I 
114TH CONGRESS 
2D SESSION 
H. R. 5698 
To require the Administrator of the Small Business Administration to estab-
lish an incubator and accelerator grant program for veterans and mem-
bers of the Armed Forces. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2016 
Mr. MCNERNEY introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To require the Administrator of the Small Business Adminis-
tration to establish an incubator and accelerator grant 
program for veterans and members of the Armed Forces. 
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 ‘‘Strengthening Tech-
nical Assistance, Resources, and Training to Unleash the 
Potential of Veterans Act of 2016’’ or the ‘‘STARTUP 
Vets Act of 2016’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
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(1) startups face common challenges as they 
seek to transform their ideas into successful, high- 
growth businesses; 
(2) incubators and accelerators are new models 
of growth that drive innovation by connecting entre-
preneurial individuals and teams to create viable 
business ventures and social initiatives; 
(3) incubators and accelerators support prom-
ising startups through partnerships, mentoring, and 
resources connecting them with seasoned entre-
preneurs; 
(4) the goal of an incubator or an accelerator 
is to help create and grow young businesses by pro-
viding them with necessary financial, technical, and 
industry support and financial and technical serv-
ices; and 
(5) veterans and members of the Armed Forces 
can amplify the skills they have acquired through 
their service in the military through entrepreneur-
ship. 
SEC. 3. INCUBATOR AND ACCELERATOR GRANT PROGRAM. 
Section 32 of the Small Business Act (15 U.S.C. 
657b) is amended by striking subsection (f) and inserting 
the following: 
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‘‘(f) INCUBATOR AND ACCELERATOR GRANT PRO-
GRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘accelerator’ means an orga-
nization that— 
‘‘(i) frequently provides, but is not ex-
clusively designed to provide, seed invest-
ment in exchange for a small amount of 
equity; 
‘‘(ii) works with a startup for a pre-
determined amount of time; or 
‘‘(iii) 
offers 
startup 
capital 
and 
mentorship to scale businesses; 
‘‘(B) the term ‘covered individual’ means— 
‘‘(i) a member of the Armed Forces, 
without regard to whether the member is 
participating in the Transition Assistance 
Program of the Department of Defense es-
tablished under section 1144 of title 10, 
United States Code; 
‘‘(ii) an individual who is participating 
in the Transition Assistance Program; 
‘‘(iii) an individual who— 
‘‘(I) served on active duty in any 
branch of the Armed Forces, includ-
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ing the National Guard and Reserves; 
and 
‘‘(II) was discharged or released 
from such service under conditions 
other than dishonorable; and 
‘‘(iv) a spouse or dependent of an in-
dividual described in clause (i), (ii), or (iii); 
‘‘(C) the term ‘eligible grantee’ means an 
incubator or accelerator that— 
‘‘(i) has a physical space, and not nec-
essarily exclusive use of physical space, in 
which veterans may come together to work 
on business ideas; and 
‘‘(ii) has been operational for not less 
than 1 year before receiving a grant under 
the program; 
‘‘(D) the term ‘incubator’ means an orga-
nization that is designed to accelerate the 
growth and success of businesses through a va-
riety of business support resources and services, 
including physical space, capital, coaching, com-
mon services, and networking connections; and 
‘‘(E) the term ‘program’ means the grant 
program established under paragraph (2)(A). 
‘‘(2) ESTABLISHMENT.— 
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‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this sub-
section, the Administrator shall establish a 
grant program under which the Administrator 
shall make grants to eligible grantees to create 
and operate incubators and accelerators that 
provide technical assistance and training to cov-
ered individuals on how to become successful 
entrepreneurs and form small business con-
cerns. 
‘‘(B) GOALS.—The goals of the program 
are— 
‘‘(i) to enable covered individuals to 
effectively transfer relevant skills to launch 
and accelerate small business concerns 
owned and controlled by covered individ-
uals; and 
‘‘(ii) to create an avenue for high-per-
forming covered individuals to meet and 
collaborate on business ideas. 
‘‘(C) DESIGNATION AS A TECHNICAL AS-
SISTANCE
PROGRAM.—The program shall be 
considered a management and technical assist-
ance training program of the Administration. 
‘‘(3) APPLICATION.— 
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‘‘(A) IN GENERAL.—An eligible grantee de-
siring to receive a grant under the program 
shall submit an application to the Adminis-
trator at such time, in such manner, and con-
taining such information as the Administrator 
may require. 
‘‘(B) EVALUATION.—Before making an 
award to an eligible grantee under the program, 
the Administrator or a designee of the Adminis-
trator shall conduct a site visit or evaluate a 
video submission of the eligible grantee to en-
sure that the eligible grantee is capable of car-
rying out the requirements of paragraph (5). 
‘‘(C) PREFERENCE.—In awarding grants 
under the program, the Administrator shall give 
a preference to an eligible grantee that operates 
a veterans-focused incubator or accelerator 
within the eligible grantee as of the date on 
which the eligible grantee submits an applica-
tion under subparagraph (A). 
‘‘(4) USE
OF
FUNDS.—Each eligible grantee 
that is awarded a grant under the program shall op-
erate and, if necessary, create, within the eligible 
grantee— 
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‘‘(A) an incubator or accelerator focused 
on assisting covered individuals; or 
‘‘(B) an incubator or accelerator that as-
sists all types of entrepreneurs, which shall pro-
vide targeted activities, curriculum, events, and 
mentorship tailored to covered individuals. 
‘‘(5) DUTIES.—Each eligible grantee awarded a 
grant under the program shall— 
‘‘(A) establish and use a competitive proc-
ess, if such a process has not been established, 
for selecting covered individuals to participate 
in the incubator or accelerator, as applicable; 
‘‘(B) create a forum for high-performing 
covered individuals to meet and collaborate; 
‘‘(C) designate a full-time executive direc-
tor or program manager, if such a director or 
manager has not been designated, to manage 
the incubator or accelerator, as applicable; 
‘‘(D) provide training and education, in-
cluding curriculum on entrepreneurship, to 
meet the needs of covered individuals to enable 
them to translate skills from their military serv-
ice to entrepreneurship; 
‘‘(E) provide mentoring to covered individ-
uals who are entrepreneurs, which shall consist 
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of experienced and successful entrepreneurs 
providing advice and guidance to covered indi-
viduals who have had similar experiences; and 
‘‘(F) connect covered individuals with in-
vestors who are looking to support covered indi-
viduals as entrepreneurs. 
‘‘(6) AVAILABILITY TO VETERANS AFFAIRS.—In 
consultation with the Secretary of Veterans Affairs, 
the Associate Administrator shall make available 
outreach materials regarding the program for dis-
tribution and display at local facilities of the Depart-
ment of Veterans Affairs. 
‘‘(7) DURATION OF GRANT.—A grant awarded 
under the program— 
‘‘(A) shall be for a period of not more than 
2 years; and 
‘‘(B) may be renewed for additional 2-year 
periods in accordance with paragraph (8). 
‘‘(8) RENEWAL
OF
GRANT.—In renewing a 
grant under the program, the Administrator— 
‘‘(A) shall consider the results of the most 
recent annual evaluation of the eligible grantee 
under paragraph (9); and 
‘‘(B) may withhold a grant if the Adminis-
trator determines that the eligible grantee failed 
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to provide the Administrator with information 
necessary to complete an annual evaluation of 
the eligible grantee under paragraph (9). 
‘‘(9) ANNUAL EVALUATIONS.—Not later than 1 
year after the Administrator awards a grant to an 
eligible grantee under the program, and every year 
thereafter in which the eligible grantee is awarded a 
grant under the program, the Administrator shall 
conduct an evaluation of and issue a report on the 
eligible grantee, which shall include— 
‘‘(A) the total number of covered individ-
uals served by the eligible grantee; and 
‘‘(B) the total number of startups assisted 
by the eligible grantee. 
‘‘(10) ANNUAL REPORT.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date on which the Administrator es-
tablishes the program, and every year there-
after, the Associate Administrator shall submit 
to the Committee on Small Business and Entre-
preneurship of the Senate and the Committee 
on Small Business of the House of Representa-
tives a report on the performance and effective-
ness of the program, which shall include— 
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‘‘(i) the total number of covered indi-
viduals served by each eligible grantee 
awarded a grant under the program; 
‘‘(ii) to the extent possible— 
‘‘(I) the demographics of covered 
individuals assisted under the pro-
gram, to include gender, age, race, re-
lationship to military, Military Occu-
pational Code, and years of service of 
covered individuals; 
‘‘(II) the number of startups 
launched or expanded with assistance 
provided under the program; and 
‘‘(III) the number of jobs created 
with assistance provided under the 
program; 
‘‘(iii) results of participant satisfac-
tion surveys, including a summary of any 
comments from covered individuals as-
sisted under the program; and 
‘‘(iv) an evaluation of the effectiveness 
of the program in each region of the Ad-
ministration during the most recent fiscal 
year. 
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‘‘(11) FUNDING.—For each of fiscal years 2016 
through 2020, the Administration shall use not more 
than $1,500,000 from amounts made available to 
the Office of Veterans Business Development to 
carry out the program.’’. 
Æ 
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