I 
116TH CONGRESS 
1ST SESSION H. R. 4931 
To establish a competitive grant program within the Department of Commerce 
to support nationwide growth and success of business incubators. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 30, 2019 
Mr. RYAN introduced the following bill; which was referred to the Committee 
on Transportation and Infrastructure, and in addition to the Committee 
on Financial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To establish a competitive grant program within the Depart-
ment of Commerce to support nationwide growth and 
success of business incubators. 
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 ‘‘Incubator Act of 
2019’’. 
SEC. 2. BUSINESS INCUBATOR GRANT PROGRAM. 
(a) ESTABLISHMENT.—The Department of Com-
merce, acting through the Assistant Secretary of Com-
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merce for Economic Development, shall establish and 
carry out a competitive grant program to provide financial 
assistance to support the growth and success of business 
incubators. 
(b) APPLICATION.—An eligible applicant desiring a 
grant under this section shall submit to the Assistant Sec-
retary for the program established under subsection (a) 
an application at such time, in such manner, and con-
taining such information as the Assistant Secretary may 
require. 
(c) AWARDING
OF GRANTS.—In awarding grants 
under this section, the Assistant Secretary shall— 
(1) consider factors such as population, unem-
ployment level, and business creation metrics to en-
sure that the program addresses demonstrated needs 
and achieves high impact; and 
(2) ensure grants are made broadly available to 
eligible applicants from all States to promote busi-
ness incubator development nationwide. 
(d) MAXIMUM ALLOWABLE AMOUNT
FOR EACH 
STATE.—The maximum amount awarded to eligible appli-
cants in a single State in a fiscal year under this section 
may not exceed $5,000,000. 
(e) USE OF FUNDS.—An entity receiving a grant 
under this section may use grant amounts for operating 
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expenses and may not use such amounts for capital ex-
penditures. 
(f) PRIORITY OF AWARDEES.—In providing funds 
awarded under this section, the Assistant Secretary shall 
prioritize applications from eligible applicants that are lo-
cated in an opportunity zone. 
(g) TERMS.— 
(1) AMOUNT.—A grant awarded under this sec-
tion shall not be more than $500,000 for each fiscal 
year. 
(2) DURATION.—A grant shall be awarded for 
a period not to exceed 4 years. 
(3) SUBSEQUENT AWARD.—Upon the expiration 
of a grant awarded under this section, the grant re-
cipient is eligible to apply for an additional grant. 
(4) SUPPLEMENT NOT SUPPLANT.—None of the 
funds made available to an entity under this section 
shall supplant any funds provided by a State for the 
operating expenses of an incubator. 
(h) PROGRAM IMPACTS AND REPORTING.— 
(1) METHODS
AND
METRICS.—The Assistant 
Secretary shall develop methods and metrics to— 
(A) assess the impacts of the program; and 
(B) evaluate the ongoing success of busi-
ness incubators funded under this section. 
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(2) REPORT.—Not later than the last day of 
each fiscal year, the Assistant Secretary shall submit 
to Congress, and make available to the public on an 
internet website, a comprehensive annual report on 
the awards, status, and impacts of the program, in-
cluding key program highlights and success stories 
for the most recent fiscal year. 
(i) DEFINITIONS.—In this Act: 
(1) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary of 
Commerce for Economic Development of the Depart-
ment of Commerce. 
(2) BUSINESS
INCUBATOR.—The term ‘‘busi-
ness incubator’’ means an organization that— 
(A) provides physical workspace and facili-
ties resources to startups and established busi-
nesses; and 
(B) is designed to accelerate the growth 
and success of businesses through a variety of 
business support resources and services, includ-
ing— 
(i) access to capital, business edu-
cation, and counseling; 
(ii) networking opportunities; 
(iii) mentorship opportunities; and 
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(iv) other services intended to aid in 
developing a business. 
(3) OPPORTUNITY
ZONE.—The term ‘‘oppor-
tunity zone’’ has the meaning given the term quali-
fied opportunity zone in section 1400Z–1 of the In-
ternal Revenue Code of 1986. 
(4) ELIGIBLE APPLICANT.—The term ‘‘eligible 
applicant’’ means a person that— 
(A) owns or manages an existing business 
incubator that is a nonprofit organization; 
(B) is able to provide the physical work-
space, equipment, and connectivity necessary 
for businesses and entrepreneurs to collaborate 
and conduct business on a local, regional, na-
tional, and international level; and 
(C) has been operational for not less than 
1 year before receiving a grant under this sec-
tion. 
(5) STATE.—The term ‘‘State’’ means each 
State of the United States, the District of Columbia, 
each commonwealth, territory or possession of the 
United States, and each federally recognized Indian 
Tribe. 
(6) NONPROFIT
ORGANIZATION.—The term 
‘‘nonprofit organization’’ means an organization that 
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is described under section 501(c) of the Internal 
Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code. 
(j) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this Act, 
$50,000,000 for each of fiscal years 2020 through 2025. 
Æ 
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