I 
111TH CONGRESS 
2D SESSION 
H. R. 6120 
To direct the Secretary of Commerce to establish a technology deployment 
and early-stage business investment grant program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2010 
Mr. PASTOR of Arizona 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 de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To direct the Secretary of Commerce to establish a tech-
nology deployment and early-stage business investment 
grant 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 ‘‘Technology Deploy-
ment and Early-Stage Business Investment Act of 2010’’. 
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SEC. 2. TECHNOLOGY DEPLOYMENT AND EARLY-STAGE 
BUSINESS INVESTMENT GRANT PROGRAM. 
(a) ESTABLISHMENT.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of Com-
merce shall establish a technology deployment and early- 
stage business investment grant program (in this section 
referred to as the ‘‘program’’) to support the development 
of early-stage businesses in targeted industries. 
(b) GRANT AUTHORITY.— 
(1) IN GENERAL.—In carrying out the program, 
the Secretary is authorized to make grants to cov-
ered business accelerators. 
(2) GRANT AMOUNTS.— 
(A) NON-FEDERAL CAPITAL LIMITATION.— 
A grant made to a covered business accelerator 
under the program may not be in an amount 
that exceeds the amount of the accelerator’s 
capital that— 
(i) is not from a Federal source; and 
(ii) is available for investment and 
business assistance services on or before 
the date on which a grant is drawn upon. 
(B) AGGREGATE
AMOUNT
LIMITATION.— 
The aggregate amount of all grants made to a 
covered business accelerator under the program 
may not exceed $5,000,000. 
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(c) GRANT AWARD PROCESS.—In making a grant 
under the program, the Secretary shall commit a grant 
amount to a covered business accelerator and the amount 
of each such commitment shall remain available to be 
drawn upon by the accelerator during the 5-year period 
beginning on the date on which each such commitment 
is first drawn upon. 
(d) USE OF GRANT.— 
(1) IN
GENERAL.—A grant made under the 
program may be used by a covered business accel-
erator for the following: 
(A) Making an investment in an early- 
stage business in a targeted industry. 
(B) Providing training, counseling, and 
other assistance to an early-stage business in a 
targeted industry to support the development of 
the business. 
(C) Making investments in and providing 
support to an early-stage business in a targeted 
industry to assist the business with proof of 
concept activities that accelerate the deployment 
and commercialization of technology. 
(D) Providing purchased services to an 
early-stage business in a targeted industry. 
(E) Conducting due diligence activities. 
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(F) Meeting operational expenses. 
(2) LIMITATIONS.— 
(A) PROOF OF CONCEPT ACTIVITIES.—Not 
more than 40 percent of the amount of a grant 
made to a covered business accelerator under 
the program may be used by the accelerator to 
provide assistance for proof of concept activi-
ties. 
(B) PURCHASED
SERVICES.—Not more 
than 20 percent of the amount of a grant made 
to a covered business accelerator under the pro-
gram may be used by the accelerator to provide 
purchased services to an early-stage business in 
a targeted industry. 
(C) DUE
DILIGENCE
ACTIVITIES.—Not 
more than 10 percent of the amount of a grant 
made to a covered business accelerator under 
the program may be used by the accelerator to 
conduct due diligence activities. 
(D) OPERATIONAL EXPENSES.—Not more 
than 20 percent of the amount of a grant made 
to a covered business accelerator under the pro-
gram may be used by the accelerator to meet 
operational expenses. 
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(3) DESIGNATION OF GRANT USES.—In the ap-
plication of a covered business accelerator for a 
grant under the program, the accelerator shall notify 
the Secretary of the percentage of the grant amount 
that will be used for each of the activities described 
in subparagraphs (A) through (F) of paragraph (1) 
and provide a detailed description of the activities to 
be undertaken. 
(e) GRANT CONDITIONS.— 
(1) FUND MANAGER.—As a condition of receiv-
ing a grant under the program, a covered business 
accelerator shall designate an individual as the fund 
manager for the grant amount and that individual 
shall administer and be responsible to the Secretary 
for information with respect to the grant amounts 
received. 
(2) INVESTMENT REVIEW.—As a condition of 
receiving a grant under the program, a covered busi-
ness accelerator shall establish an investment evalua-
tion process that involves not fewer than 5 individ-
uals (3 of whom may not be employed by or related 
to the accelerator or an affiliate of the accelerator) 
who shall— 
(A) review proposals for and advise the ac-
celerator on the use of grant funds; 
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(B) provide letters of support and ref-
erence to the Secretary with respect to pro-
posals for the use of grant funds by the accel-
erator; and 
(C) submit periodic reports to the Sec-
retary on the results of activities carried out 
with grant funds. 
(3) COLLABORATOR.—As a condition of receiv-
ing a grant under the program, a covered business 
accelerator shall assign to each early-stage business 
in a targeted industry that is assisted with grant 
amounts a collaborator that shall be an individual or 
organization not otherwise employed by or related to 
the accelerator or an affiliate of the accelerator and 
that shall assist the accelerator in providing support 
to the business. 
(f) FEDERAL SHARE OF ACTIVITIES.—The Federal 
share of the cost of an activity carried out by a covered 
business accelerator with the assistance of a grant under 
the program shall not exceed 75 percent. 
(g) MONITORING AND EVALUATION.— 
(1) IN GENERAL.—The Secretary shall assess 
the effectiveness of covered business accelerators 
that receive a grant under the program. 
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(2) DATA
FROM
ACCELERATORS.—Not later 
than one year after the date of receiving a grant 
under the program, a covered business accelerator 
shall provide to the Secretary information on the ac-
tivities of the accelerator and the businesses assisted 
under the grant, including— 
(A) the number of technologies that the 
businesses have moved from proof of concept 
activities to commercialization; 
(B) the number of jobs created by the 
businesses; 
(C) the amount of taxes paid by the busi-
nesses and the employees of the businesses; 
(D) the amount of private investment the 
businesses have received; and 
(E) other data that, as determined by the 
Secretary, may be used to measure the value of 
assistance under the program. 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out the program— 
(A) $250,000,000 for the first full fiscal 
year beginning after the date of enactment of 
this Act; and 
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(B) such sums as may be necessary for 
subsequent fiscal years. 
(2) PROHIBITION ON EARMARKS.—None of the 
funds appropriated for the program may be used for 
a congressional earmark as defined in clause 9(e) of 
rule XXI of the Rules of the House of Representa-
tives. 
(i) DEFINITIONS.—In this Act, the following defini-
tions apply: 
(1) COVERED
BUSINESS
ACCELERATOR.—The 
term ‘‘covered business accelerator’’ means a public 
or private not-for-profit organization, including an 
academic institution, that— 
(A) operates a program providing assist-
ance to early-stage businesses in targeted in-
dustries to support the development of those 
businesses, including assistance with proof of 
concept activities to accelerate the deployment 
and commercialization of technology; 
(B) has a physical location and on-site 
management for the program described under 
subparagraph (A); and 
(C) has procedures for selecting businesses 
for and graduating businesses from the pro-
gram described under subparagraph (A). 
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(2) DUE
DILIGENCE
ACTIVITIES.—The term 
‘‘due diligence activities’’ means activities under-
taken to analyze and assess the desirability, value, 
and potential of an opportunity to provide assistance 
to an early-stage business in a targeted industry, in-
cluding activities to analyze and assess the tech-
nology deployment and market potential of the busi-
ness. 
(3) EARLY-STAGE
BUSINESS
IN
A
TARGETED 
INDUSTRY.—The term ‘‘early-stage business in a 
targeted industry’’ means a small business concern 
that— 
(A) is domiciled in a State; 
(B) has not generated gross annual reve-
nues exceeding $5,000,000 in any of the pre-
vious 3 years; and 
(C) is engaged primarily in researching, 
developing, manufacturing, producing, or bring-
ing to market goods or services with respect to 
any of the following business sectors: 
(i) Agricultural technology. 
(ii) Energy technology. 
(iii) Environmental technology. 
(iv) Life science technology. 
(v) Biotechnology. 
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