I 
118TH CONGRESS 
2D SESSION 
H. R. 9880 
To amend the Small Business Act to establish the Entrepreneurship Corps 
National Service Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 27, 2024 
Mr. PHILLIPS introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on Edu-
cation and the Workforce, and Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Small Business Act to establish the Entrepre-
neurship Corps National Service Program, and for other 
purposes. 
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 ‘‘Entrepreneurship 
Corps for National Service Act’’. 
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SEC. 2. ENTREPRENEURSHIP CORPS NATIONAL SERVICE 
PROGRAM. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 49 as section 50; 
and 
(2) by inserting after section 48 the following 
new section: 
‘‘SEC. 49. ENTREPRENEURSHIP CORPS NATIONAL SERVICE 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ASSOCIATE
ADMINISTRATOR.—The term 
‘Associate Administrator’ means the Head of the Of-
fice of Investment and Innovation of the Administra-
tion. 
‘‘(2) CENSUS TRACT.—The term ‘census tract’ 
means a census tract delineated by the United 
States Bureau of the Census in the most recent de-
cennial census. 
‘‘(3) DISTRESSED AREA.—The term ‘distressed 
area’ means a census tract experiencing economic 
distress, as determined by the Associate Adminis-
trator based on the following economic factors for 
such census tract: 
‘‘(A) Poverty rate. 
‘‘(B) Unemployment rate. 
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‘‘(C) Median income. 
‘‘(D) The number of businesses, including 
the rate of new business formation. 
‘‘(E) The number of individuals belonging 
to an Indian tribe (as defined in section 
8(a)(13)), including the percentage of the total 
population comprised of such individuals. 
‘‘(F) Such other economic factors as deter-
mined appropriate by the Associate Adminis-
trator. 
‘‘(4) FELLOW.—The term ‘fellow’ means an in-
dividual participating in the program. 
‘‘(5) PARTICIPATING
BUSINESS.—The term 
‘participating business’ means a small business con-
cern to which a fellow is assigned under the pro-
gram. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the program established under subsection (b). 
‘‘(b) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Ad-
ministrator shall establish in the Office of Invest-
ment and Innovation of the Administration a pro-
gram, to be known as the ‘Entrepreneurship Corps 
National Service Program’, to support economic ac-
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tivity and job creation in distressed areas of the 
United States by providing to small business con-
cerns located in distressed areas individuals with the 
skills and training needed by such small business 
concerns. 
‘‘(2) PROGRAM
ADMINISTRATION.—The Asso-
ciate Administrator shall administer the program. 
‘‘(c) PROGRAM FELLOWS.— 
‘‘(1) IN GENERAL.—To be a fellow, an indi-
vidual must— 
‘‘(A) be at least 21 years of age; 
‘‘(B) have obtained an associates, bacca-
laureate, or higher degree; and 
‘‘(C) enter into a written agreement with 
the Associate Administrator under paragraph 
(2). 
‘‘(2) SERVICE
OBLIGATION
AGREEMENT.—An 
individual may become a fellow only if the individual 
enters into a written agreement with the Associate 
Administrator that requires the individual to serve 
as a fellow for a period of two years and containing 
such other terms as determined appropriate by the 
Associate Administrator. 
‘‘(3) APPLICATION.—An individual seeking to 
be a fellow shall submit to the Associate Adminis-
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trator an application at such time, in such manner, 
and containing such information as the Associate 
Administrator determines appropriate. 
‘‘(4) FELLOW SELECTION.— 
‘‘(A) IN GENERAL.—The Associate Admin-
istrator shall select the fellows in accordance 
with this paragraph. 
‘‘(B) SELECTION CRITERIA.—When select-
ing fellows the Associate Administrator shall 
consider the following: 
‘‘(i) The academic and professional 
background and accomplishments of the 
individual, including demonstrated exper-
tise in accounting, finance, economics, sta-
tistics, marketing, computer science, math-
ematics, or other subject areas related to 
business. 
‘‘(ii) Recommendations from teachers, 
coaches, mentors, and others in a position 
to evaluate the skills, expertise, back-
ground, character, and fitness for service 
in the program of the individual. 
‘‘(iii) The reasons provided by the in-
dividual for participating in the program. 
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‘‘(iv) Such other criteria as the Asso-
ciate Administrator determines appropriate 
based on the nature, purpose, and objec-
tives of the program. 
‘‘(C) FELLOW CLASS SIZE.—The Associate 
Administrator shall determine the number of 
fellows selected each year. 
‘‘(d) PARTICIPATING BUSINESSES.— 
‘‘(1) IN
GENERAL.—To be eligible to be as-
signed a fellow under the program, a small business 
concern must— 
‘‘(A) have an employer identification num-
ber (assigned pursuant to section 6109 of the 
Internal Revenue Code of 1986); 
‘‘(B) have been established not more than 
five years prior the date on which such small 
business concern submits the application re-
quired under paragraph (2); 
‘‘(C) have its headquarters or main office, 
and the locations at which a majority of em-
ployees are employed, located in distressed 
areas; and 
‘‘(D) in the 12-month period immediately 
preceding the date on which such small busi-
ness concern submits the application required 
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by paragraph (2), have gross sales of not less 
than $200,000. 
‘‘(2) APPLICATION.—A small business seeking 
to be assigned a fellow under the program shall sub-
mit to the Associate Administrator an application at 
such time, in such manner, and containing such in-
formation as the Associate Administrator determines 
appropriate. 
‘‘(3) SELECTION
OF
PARTICIPATING
BUSI-
NESSES.— 
‘‘(A) IN GENERAL.—The Associate Admin-
istrator shall select small business concerns to 
which a fellow will be assigned under the pro-
gram in accordance with subparagraph (B). 
‘‘(B) PARTICIPATING
BUSINESS
SELEC-
TION.—When selecting which small business 
concerns shall be assigned a fellow under the 
program, the Associate Administrator shall con-
sider the following: 
‘‘(i) The growth or potential for suc-
cess of the small business concern, as dem-
onstrated by the financial statements of 
the small business concern. 
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‘‘(ii) The demonstrated ability of the 
small business concern to access capital or 
attract equity investment in such concern. 
‘‘(iii) The business plan of the small 
business concern that includes a strategy 
for long-term success, if any. 
‘‘(iv) The ability of the small business 
concern to contribute to improving eco-
nomic conditions in the distressed area. 
‘‘(v) The demonstrated need of the 
small business concern for a fellow under 
the program. 
‘‘(vi) Any other criteria that the Asso-
ciate 
Administrator 
determines 
appro-
priate. 
‘‘(e) ASSIGNMENT OF FELLOWS.— 
‘‘(1) IN
GENERAL.—The Associate Adminis-
trator shall assign fellows to small business concerns 
under the program in accordance with this sub-
section. 
‘‘(2) CONSIDERATIONS.—When assigning fel-
lows to small business concerns business under the 
program, the Associate Administrator shall con-
sider— 
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‘‘(A) the needs of the small business con-
cern; 
‘‘(B) the expertise, experience, skills, back-
ground, and interests of the fellow; and 
‘‘(C) the preferences of the fellow regard-
ing the location of the small business concern to 
which such fellow is assigned under the pro-
gram. 
‘‘(3) DURATION.—The assignment of a fellow 
to a small business concern under the program shall 
be for a period of two years. 
‘‘(4) ASSIGNMENT LIMIT.—The Associate Ad-
ministrator may not assign a fellow under the pro-
gram to any small business concern to which, as of 
the date on which such assignment will commence, 
any other fellow is assigned. 
‘‘(5) RESOURCES.— 
‘‘(A) IN GENERAL.—A participating busi-
ness shall provide to the fellow assigned to the 
participating business under the program the 
resources required for the fellow to carry out 
the duties such participating business assigns to 
such fellow. 
‘‘(B) REIMBURSEMENT.—The Associate 
Administrator shall reimburse a participating 
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business for the reasonable costs incurred by 
such participating business for the resources 
provided by the business under subparagraph 
(A). 
‘‘(6) REASSIGNMENT.—If a fellow assigned to a 
participating business under the program is unable 
to continue such assignment, or for such other rea-
sons as determined appropriate by the Associate Ad-
ministrator, the Associate Administrator may reas-
sign such fellow to another small business concern 
under the program for the remainder of the period 
of the assignment to the participating business. 
‘‘(f) BENEFITS.— 
‘‘(1) COMPENSATION.— 
‘‘(A) IN GENERAL.—The Associate Admin-
istrator shall pay to fellows a rate of pay deter-
mined appropriate by the Associate Adminis-
trator. 
‘‘(B) CRITERIA.—When determining the 
rate of pay for fellows under subparagraph (A), 
the Associate Administrator shall ensure that 
the rate of pay— 
‘‘(i) is comparable with the rate of 
pay of employees of the Federal Govern-
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ment with similar educational attainment, 
experience, and training; and 
‘‘(ii) is not less than the greater of the 
applicable State minimum wage or the 
Federal minimum hourly rate under the 
Fair Labor Standards Act of 1938 (29 
U.S.C. 201 et seq.). 
‘‘(2) EDUCATION GRANTS.— 
‘‘(A) IN
GENERAL.—An individual who 
completes a period of service as a fellow under 
program in accordance with the agreement such 
individual entered into under subsection (c)(2) 
and submits the application required under sub-
paragraph (B) shall be eligible to receive a 
grant in accordance with this paragraph. 
‘‘(B) APPLICATION.—An individual seeking 
a grant under this paragraph shall submit to 
the Associate Administrator an application at 
such time, in such manner, and containing such 
information as the Associate Administrator de-
termines appropriate. 
‘‘(C) GRANT
AMOUNT.—The aggregate 
amount of a grant made under this paragraph 
to an individual described in subparagraph (B) 
may not exceed the maximum amount of a 
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‘‘(aa) under subpart II of 
part A of title VII of the Public 
Health Service Act; or 
‘‘(bb) under part E of title 
VIII of that Act. 
‘‘(III) Loans made to such recipi-
ent— 
‘‘(aa) by a State to pay 
postsecondary 
educational 
ex-
penses of the recipient; or 
‘‘(bb) by a public institution 
of higher education (as defined in 
section 101 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 
1001)) to pay a borrower’s costs 
of attendance at such institution. 
‘‘(IV) Expenses incurred by such 
recipient for a program of education 
leading to an advanced degree to the 
extent that such expenses are— 
‘‘(aa) expenses for which 
amounts payable to an individual 
under section 3313(c)(1)(B)(iv) 
of title 38, United States Code, 
may be used; and 
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‘‘(bb) owed or incurred on or 
after the date on which such re-
cipient becomes eligible for such 
grant. 
‘‘(ii) QUALIFIED FEDERAL STUDENT 
LOAN
DEFINED.—In this subparagraph, 
the term ‘qualified Federal student loan’ 
means a loan made under Part D of title 
IV of the Higher Education Act of 1965 
(1087a et seq.) except such term does not 
include— 
‘‘(I) a Federal Direct PLUS 
Loan made to the parents of a de-
pendent student; or 
‘‘(II) a Federal Direct Consolida-
tion Loan made under section 455(g) 
of such Act to the extent that such 
loan was used to repay a Federal Di-
rect PLUS Loan made to the parents 
of a dependent student. 
‘‘(F) SINGLE AWARD.—An individual may 
receive only a single grant under this para-
graph. 
‘‘(G) OUTREACH.—The Associate Adminis-
trator shall— 
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‘‘(i) conduct outreach to institutions 
of higher education (as defined under sec-
tion 101(a) of the Higher Education Act of 
1965 (20 U.S.C. 1001(a))) to provide in-
formation to students at such institutions 
about the benefits of participating as a fel-
low in the program; and 
‘‘(ii) seek to coordinate with institu-
tions of higher education and businesses to 
develop academic and professional opportu-
nities for former fellows, including oppor-
tunities for employment and to obtain ad-
vanced degrees. 
‘‘(3) NONCOMPETITIVE
APPOINTMENT
ELIGI-
BILITY.—During the one-year period beginning on 
the date on which an individual completes a period 
service as a fellow under the program in accordance 
with the agreement such individual entered into 
under subsection (c)(2), the head of a Federal agen-
cy may, without regard to the provisions of sub-
chapter I of chapter 33 of title 5, United States 
Code, other than section 3303 and 3328 of such 
title, appoint such individual to a vacant position in 
the competitive service in such agency for which 
such individual is qualified. 
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‘‘(g) STATUS.— 
‘‘(1) IN GENERAL.—Except as provided by this 
subsection— 
‘‘(A) a fellow is not an employee of— 
‘‘(i) any participating business to 
which such fellow is assigned under the 
program for the purpose of any law, in-
cluding the Internal Review Code of 1986; 
or 
‘‘(ii) the Federal Government; and 
‘‘(B) selection for participation in the pro-
gram does not constitute an appointment as an 
officer or employee of the Federal Government 
for the purpose of any law. 
‘‘(2) EXCEPTIONS.—A fellow is deemed to be 
an employee of— 
‘‘(A) the Federal Government for purposes 
of— 
‘‘(i) chapter 81 of title 5, United 
States Code; and 
‘‘(ii) chapter 171 of title 28, United 
States Code, and any other Federal tort li-
ability statute; and 
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‘‘(B) the Administration for the purposes 
of chapters 83 and 84 of title 5, United States 
Code. 
‘‘(3) HEALTH CARE.—A fellow is deemed to be 
a full-time employee of the Administration for the 
purposes of chapter 89 of title 5, United States 
Code, except that a fellow or former fellow may not 
make the election under section 8905a(a) of such 
title with respect to coverage under such chapter ob-
tained pursuant this paragraph. 
‘‘(4) EMPLOYMENT
TAXES.—For purposes of 
subtitle C of the Internal Revenue Code of 1986, the 
Small Business Administration shall be treated as 
the employer of each fellow with respect to the pro-
gram. 
‘‘(h) REPORT TO CONGRESS.—Not later than one 
year after the establishment of the program, and annually 
thereafter, the Associate Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the 
House of Representatives a report on the program, includ-
ing— 
‘‘(1) the effects of fellows on the participating 
businesses to which such fellows have been assigned 
under the program; 
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‘‘(2) the economic effects of the program on 
distressed communities in which participating busi-
nesses are located; 
‘‘(3) the overall performance of fellows under 
the program; 
‘‘(4) the overall performance of participating 
businesses; and 
‘‘(5) recommendations to modify the program 
to more effectively support economic activity and job 
creation in distressed areas of the United States.’’. 
(b) STUDENT LOAN FORGIVENESS CREDIT.—Section 
455(m)(3)(B) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(m)(3)(B)) is amended— 
(1) in clause (i), by striking ‘‘; or’’ and insert-
ing a semicolon; 
(2) in clause (ii), by striking the period at the 
end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(iii) serving as a fellow in the Entre-
preneurship Corps National Service Pro-
gram established under section 49 of the 
Small Business Act.’’. 
(c) EXCLUSION FROM ADJUSTED GROSS INCOME.— 
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(1) IN GENERAL.—Part III of subchapter B of 
the Internal Revenue Code of 1986 is amended by 
inserting after section 139I the following new sec-
tion: 
‘‘SEC. 139J. SMALL BUSINESS FELLOW. 
‘‘In the case of a small business concern to which a 
fellow is assigned under the Entrepreneurship Corps Na-
tional Service Program established under section 49 of the 
Small Business Act, gross income does not include the 
value of any labor performed by such fellow.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part III of subchapter B of such Code is 
amended by inserting after the item relating to sec-
tion 139I the following new item: 
‘‘Sec. 139J. Small business fellow.’’. 
(3) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this sub-
section. 
Æ 
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