Title: SOAR Act
Policy area: Commerce

Summary:
Startup Opportunity Accelerator Act of 2017 or the SOAR Act
This bill amends the Small Business Act to require the Small Business Administration to develop and begin implementing a program to award cash prizes or grants of up to $50,000 to an organization to support new small businesses operating for five years or less. These awards may be used for construction costs, space acquisition, and programmatic purposes, but may not be used to provide capital or professional services to such businesses directly or through the subaward of funds.
The organization must be located in the United States, with a primary purpose to support new small businesses and be often classified as an accelerator. The term "accelerator" means an organization that (1) frequently provides, but is not exclusively designed to provide, seed investment in exchange for a small amount of equity; (2) works with a startup for a predetermined amount of time; (3) provides mentorship and instruction to scale businesses; or (4) offers startup capital or the opportunity to raise capital from outside investors.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1969 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1969

To amend the Small Business Act to create a program to provide funding 
  for organizations that support startup businesses in formation and 
   early growth stages by providing entrepreneurs with resources and 
     services to produce viable businesses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 17, 2017

  Mr. Booker introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To amend the Small Business Act to create a program to provide funding 
  for organizations that support startup businesses in formation and 
   early growth stages by providing entrepreneurs with resources and 
     services to produce viable businesses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Startup Opportunity Accelerator Act 
of 2017'' or the ``SOAR Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (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 entrepreneurial individuals 
        and teams to create viable business ventures and social 
        initiatives;
            (3) startups have contributed greatly to the United States 
        economy, with research showing that between 1982 and 2011, 
        businesses 5 years or younger were responsible for nearly every 
        net new job created;
            (4) incubators and accelerators support promising startups 
        through partnerships, mentoring, and resources connecting them 
        with seasoned entrepreneurs;
            (5) the goal of an incubator or an accelerator is to help 
        create and grow young businesses by providing them with 
        necessary financial, technical, and industry support and 
        financial and technical services; and
            (6) startups offer unique opportunities for growth and 
        development for women, minority, and veterans to become 
        successful entrepreneurs and leaders in new and developed 
        fields.

SEC. 3. FUNDING FOR ORGANIZATIONS THAT SUPPORT STARTUP BUSINESSES.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 47 (15 U.S.C. 631 note) as 
        section 48; and
            (2) by inserting after section 46 the following:

``SEC. 47. FUNDING FOR ORGANIZATIONS THAT SUPPORT STARTUP BUSINESSES.

    ``(a) Definitions.--In this section--
            ``(1) the term `accelerator' means an organization that--
                    ``(A) frequently provides, but is not exclusively 
                designed to provide, seed investment in exchange for a 
                small amount of equity;
                    ``(B) works with a startup for a predetermined 
                amount of time;
                    ``(C) provides mentorship and instruction to scale 
                businesses; or
                    ``(D) offers startup capital or the opportunity to 
                raise capital from outside investors;
            ``(2) the term `disability' has the meaning given the term 
        in section 3 of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12102);
            ``(3) the term `eligible entity' means an organization--
                    ``(A) that is located in the United States;
                    ``(B) the primary purpose of which is to support 
                new small business concerns; and
                    ``(C) that is often classified as an accelerator;
            ``(4) the term `new small business concern' means a small 
        business concern that has been in operation for not more than 5 
        years;
            ``(5) the term `small business concern owned and controlled 
        by socially and economically disadvantaged individuals' has the 
        meaning given the term in section 8(d)(3)(C); and
            ``(6) the term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and any territory or possession of the United States.
    ``(b) Funding.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall develop and 
        begin implementing a program to award cash prizes or grants of 
        not more than $50,000 to eligible entities to support new small 
        business concerns.
            ``(2) Use of funds.--A prize or grant under this section--
                    ``(A) may be used for construction costs, space 
                acquisition, and programmatic purposes; and
                    ``(B) may not be used to provide capital or 
                professional services to new small business concerns 
                directly or through the subaward of funds.
            ``(3) Disbursal of funds.--In disbursing funds under this 
        section, the Administrator may use incremental or scheduled 
        payments.
    ``(c) Application.--
            ``(1) In general.--An eligible entity desiring a prize or 
        grant under this section shall demonstrate that the eligible 
        entity will use the prize or grant to provide assistance to not 
        less than 10 new small business concerns per year.
            ``(2) Requirements.--In soliciting applications and 
        awarding prizes or grants to eligible entities under this 
        section, the Administrator shall employ a streamlined and 
        inclusive approach that--
                    ``(A) widely publicizes funding opportunities to a 
                broad audience;
                    ``(B) utilizes an easily accessible submission 
                process or platform;
                    ``(C) shall make every effort to minimize--
                            ``(i) the use of forms, detailed budgets, 
                        supporting documentation, or written 
                        submissions; and
                            ``(ii) any other burdensome requirement;
                    ``(D) focuses on solution-based approaches and 
                results-based outcomes;
                    ``(E) encourages innovation; and
                    ``(F) allows proposals or pitches to be presented 
                using various formats or media.
    ``(d) Criteria.--The Administrator shall establish criteria for a 
prize or grant under this section shall give priority to eligible 
entities that are providing or plan to provide to new small business 
concerns--
            ``(1) office, manufacturing, or warehouse space, including 
        appropriate operations infrastructure;
            ``(2) access to capital either directly from the eligible 
        entity (using amounts other than the amounts provided under the 
        prize or grant) or through guidance and contacts for acquiring 
        capital from outside investors;
            ``(3) access to professional services either directly from 
        the eligible entity (using amounts other than the amounts 
        provided under the prize or grant) or through guidance and 
        contacts for acquiring professional services, including 
        accounting and legal services; or
            ``(4) a formal structured mentorship or developmental 
        program that assists new small business concerns with building 
        business skills and competencies.
    ``(e) Considerations in Choosing Recipients.--In determining 
whether to award a prize or grant under this section to an eligible 
entity, the Administrator shall take into account--
            ``(1) for eligible entities that have in operation a 
        program to support new small business concerns, the record of 
        the eligible entity in assisting new small business concerns, 
        including, for each of the 3 full years before the date on 
        which the eligible entity applies for a prize or grant under 
        this section--
                    ``(A) the retention rate of new small business 
                concerns in the program of the eligible entity;
                    ``(B) the average period of participation by new 
                small business concerns in the program of the eligible 
                entity;
                    ``(C) the total, average, and median capital raised 
                by new small business concerns participating in the 
                program of the eligible entity; and
                    ``(D) the total, average, and median number of 
                employees of new small business concerns participating 
                in the program of the eligible entity;
            ``(2) for all eligible entities--
                    ``(A) the number of new small business concerns 
                assisted or anticipated to be assisted by the eligible 
                entity;
                    ``(B) the number of new small business concerns 
                applying or anticipated to apply for assistance from 
                the eligible entity;
                    ``(C) whether the program of the eligible entity 
                provides or would provide assistance to individuals in 
                gender, racial, or ethnic groups underrepresented by 
                existing programs to assist new small business 
                concerns; and
                    ``(D) other metrics determined appropriate by the 
                Administrator;
            ``(3) the need in the geographic area to be served by the 
        program to be carried out using the prize or grant for 
        additional assistance for new small business concerns, if the 
        area has sufficient population density, as determined by the 
        Administrator;
            ``(4) the level of experience of the entrepreneurial 
        leadership of the eligible entity; and
            ``(5) the ability of the eligible entity to use and 
        leverage local strengths, including human resources, 
        infrastructure, and educational institutions.
    ``(f) Requirement To Award Prizes and Grants to Certain 
Accelerators.--In order to promote diversity in entrepreneurship, the 
Administrator shall award not less than 50 percent of amounts 
appropriated for prizes or grants in a given fiscal year to--
            ``(1) accelerators located in geographically underserved 
        areas; and
            ``(2) accelerators for which not less than 50 percent of 
        the small business concerns served by the accelerator are small 
        business concerns--
                    ``(A) owned and controlled by socially and 
                economically disadvantaged individuals;
                    ``(B) owned and controlled by women; or
                    ``(C) that are not less than 51 percent owned by 
                one or more--
                            ``(i) Native Americans;
                            ``(ii) individuals participating in the 
                        Transition Assistance Program of the Department 
                        of Defense;
                            ``(iii) individuals who--
                                    ``(I) served on active duty in any 
                                branch of the Armed Forces, including 
                                the National Guard and Reserves; and
                                    ``(II) were discharged or released 
                                from such service under conditions 
                                other than dishonorable;
                            ``(iv) formerly incarcerated individuals; 
                        or
                            ``(v) individuals with a disability.
    ``(g) Matching Nonpublic Funding Requirement.--
            ``(1) In general.--An eligible entity receiving a prize or 
        grant under this section shall obtain funds from a private 
        individual or entity (including a for-profit or nonprofit 
        entity) that are--
                    ``(A) for the same purposes as a prize or grant may 
                be made under this section;
                    ``(B) used to carry out the program of the eligible 
                entity carried out using the prize or grant under this 
                section; and
                    ``(C) in an amount that is not to be less than 50 
                percent of the amount of the prize or grant under this 
                section.
            ``(2) Form of non-federal share.--Not more than 25 percent 
        of the funds obtained under paragraph (1) may be in the form of 
        in-kind contributions.
    ``(h) Consequences of Failure To Abide by Terms and Conditions of 
Prize or Grant Requirements of This Section.--The Administrator shall 
notify each eligible entity receiving a prize or grant under this 
section that failure to abide by the terms and conditions of the prize 
or grant or the requirements of this section may, in the discretion of 
the Administrator and in addition to any other civil or criminal 
consequences, result in the Administrator withholding payments or 
ordering the eligible entity to return the prize or grant funds.
    ``(i) Annual Progress Reporting by Recipients of Prize or Grant.--
Each eligible entity receiving a prize or grant under this section 
shall submit to the Administrator an annual report on the progress of 
the program carried out using the amounts received under the prize or 
grant, including--
            ``(1) the number of new small business concerns 
        participating in the program during each of the 3 years 
        preceding the report;
            ``(2) the number of new small business concerns applying to 
        participate in the program during each of the 3 years preceding 
        the report;
            ``(3) the retention rate of new small business concerns in 
        the program;
            ``(4) the average period of participation in the program by 
        new small business concerns;
            ``(5) the total, average, and median capital raised by new 
        small business concerns participating in the program;
            ``(6) the total, average, and median number of employees of 
        new small business concerns participating in the program;
            ``(7) the number of new small business concerns--
                    ``(A) owned and controlled by socially and 
                economically disadvantaged individuals;
                    ``(B) owned and controlled by women; or
                    ``(C) that are not less than 51 percent owned by 
                one or more--
                            ``(i) Native Americans;
                            ``(ii) individuals participating in the 
                        Transition Assistance Program of the Department 
                        of Defense;
                            ``(iii) individuals who--
                                    ``(I) served on active duty in any 
                                branch of the Armed Forces, including 
                                the National Guard and Reserves; and
                                    ``(II) were discharged or released 
                                from such service under conditions 
                                other than dishonorable;
                            ``(iv) formerly incarcerated individuals; 
                        or
                            ``(v) individuals with a disability; and
            ``(8) other metrics determined appropriate by the 
        Administrator.
    ``(j) Report to Congress.--The Administrator shall submit to 
Congress an annual report on the program under this section, which 
shall include an assessment of the effectiveness of the program, 
including an assessment based on the metrics listed in subsection (i).
    ``(k) Coordination With Other Small Business Administration 
Programs.--The Administrator shall take appropriate action to encourage 
eligible entities receiving a prize or grant under this section to use 
and incorporate other programs of the Administration, such as small 
business development centers, small business investment companies, 
loans under section 7(a), and assistance under title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et seq.).
    ``(l) Coordination With the Department of Veterans Affairs.--In 
consultation with the Secretary of Veteran Affairs, the Administrator 
shall make available outreach materials regarding the opportunities for 
veterans within the program under this section for distribution and 
display at local facilities of the Department of Veterans Affairs.
    ``(m) Listing on Website.--The Administrator shall include a list 
of eligible entities receiving a prize or grant under this section on 
the website of the Administration.
    ``(n) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $6,000,000 for each of the first 
5 fiscal years beginning after the date of enactment of this 
section.''.
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