award grants to States to enable such States to as-
sist businesses, organizations, and agencies de-
scribed in section 2(a)(2) in conducting planning to 
form consortia described in such section. 
(2) 
MAXIMUM
AMOUNT
OF
GRANT.—The 
amount of a grant awarded to a State under para-
graph (1) may not exceed $500,000 for any fiscal 
year. 
(b) APPLICATION.—The Secretary of Labor may not 
award a grant under subsection (a) to a State unless such 
State submits to the Secretary an application at such 
time, in such manner, and containing such information as 
the Secretary may reasonably require. 
(c) REQUIREMENT OF MATCHING FUNDS.—The Sec-
retary of Labor may not award a grant under subsection 
(a) to a State unless such State agrees that it will make 
available non-Federal contributions toward the costs of 
carrying out activities under this section in an amount 
that is not less than $1 for each $1 of Federal funds pro-
vided under the grant. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$5,000,000 for fiscal year 2007. 
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SEC. 4. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR 
ACTIVITIES. 
(a) PURPOSE.—It is the purpose of this section to 
encourage entrepreneurial creativity and risk taking 
through the support of the furnishing of business incu-
bator services for newly established small businesses and 
medium-sized businesses. 
(b) GRANT PROGRAM.—To achieve the purpose of 
this section, the Secretary of Commerce shall carry out 
a program to provide, through grants, financial assistance 
for the establishment and support of entities that provide 
business incubator services in support of the initiation and 
initial sustainment of business activities by newly estab-
lished small businesses and medium-sized businesses. 
(c) AWARDS OF GRANTS.— 
(1) ELIGIBILITY
REQUIREMENTS.—The Sec-
retary shall prescribe the eligibility requirements for 
the awarding of grants under this section. 
(2) COMPETITIVE SELECTION.—The Secretary 
shall use a competitive process for the awarding of 
grants under this section and, under that process, 
select recipients of the grants on the basis of merit, 
with priority given to underserved rural and urban 
communities. 
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(3) APPLICATIONS
FOR
GRANTS.—The Sec-
retary shall prescribe the form and content of appli-
cations required for grants under this section. 
(d) ADDITIONAL ADMINISTRATIVE AUTHORITIES.— 
(1) COST-SHARING.—The Secretary may re-
quire the recipient of a grant under this section to 
defray a specific level of its operating expenses for 
business incubator services out of funds available 
from sources other than the Federal Government. 
(2) ADDITIONAL
TERMS
AND
CONDITIONS.— 
The Secretary, in awarding a grant, may impose any 
other terms and conditions for the use of the pro-
ceeds of the grant that the Secretary determines ap-
propriate for carrying out the purpose of this section 
and to protect the interests of the United States, in-
cluding the requirement that entities providing busi-
ness incubator services that receive a grant under 
this section develop a plan for ultimately becoming 
self-sufficient. 
(e) DEFINITIONS.—In this section: 
(1) BUSINESS
INCUBATOR
SERVICES.—The 
term ‘‘business incubator services’’ includes profes-
sional and technical services necessary for the initi-
ation and initial sustainment of operations of a 
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newly established business, including such services 
as the following: 
(A) LEGAL SERVICES.—Legal services, in-
cluding aid in preparing corporate charters, 
partnership agreements, and basic contracts. 
(B) 
INTELLECTUAL
PROPERTY
SERV-
ICES.—Services in support of the protection of 
intellectual property through patents, trade-
marks, or otherwise. 
(C) TECHNOLOGY SERVICES.—Services in 
support of the acquisition and use of advanced 
technology, including the use of Internet serv-
ices and web-based services. 
(D) PLANNING.—Advice on— 
(i) strategic planning; and 
(ii) marketing, including advertising. 
(2) SMALL BUSINESS AND MEDIUM-SIZED BUSI-
NESS.— 
(A) SECRETARY TO PRESCRIBE.—The Sec-
retary shall prescribe the definitions of the 
terms ‘‘small business’’ and ‘‘medium-sized 
business’’ for the purpose of this section. 
(B) SMALL BUSINESS STANDARDS.—In de-
fining the term ‘‘small business’’ for the pur-
pose of this section, the Secretary shall apply 
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