Title: Incubator Act of 2019
Policy area: Commerce

Summary:
Incubator Act of 2019
This bill requires the Department of Commerce to establish a grant program to provide financial assistance to support the growth and success of business incubators.
Commerce shall (1) award such grants competitively; (2) take into account factors such as population, unemployment level, and business creation metrics, as well as giving priority to applicants located in opportunity zones (low-income communities); and (3) award no more than $5 million to applicants in a single state and no more than $500,000 to a single grantee during a fiscal year. An entity receiving a grant may use the funds for operating expenses but may not use the funds for capital expenditures.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4931 Introduced in House (IH)]

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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 Department of 
     Commerce to support nationwide growth and success of business 
                              incubators.

    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 ``Incubator Act of 2019''.

SEC. 2. BUSINESS INCUBATOR GRANT PROGRAM.

    (a) Establishment.--The Department of Commerce, acting through the 
Assistant Secretary of Commerce 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 Secretary for the program 
established under subsection (a) an application at such time, in such 
manner, and containing 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, unemployment 
        level, and business creation metrics to ensure 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 business incubator 
        development nationwide.
    (d) Maximum Allowable Amount for Each State.--The maximum amount 
awarded to eligible applicants 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 expenses and may not use such 
amounts for capital expenditures.
    (f) Priority of Awardees.--In providing funds awarded under this 
section, the Assistant Secretary shall prioritize applications from 
eligible applicants that are located in an opportunity zone.
    (g) Terms.--
            (1) Amount.--A grant awarded under this section 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 recipient 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 business 
                incubators funded under this section.
            (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, including key program highlights and success 
        stories for the most recent fiscal year.
    (i) Definitions.--In this Act:
            (1) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Economic 
        Development of the Department of Commerce.
            (2) Business incubator.--The term ``business incubator'' 
        means an organization that--
                    (A) provides physical workspace and facilities 
                resources to startups and established businesses; and
                    (B) is designed to accelerate the growth and 
                success of businesses through a variety of business 
                support resources and services, including--
                            (i) access to capital, business education, 
                        and counseling;
                            (ii) networking opportunities;
                            (iii) mentorship opportunities; and
                            (iv) other services intended to aid in 
                        developing a business.
            (3) Opportunity zone.--The term ``opportunity zone'' has 
        the meaning given the term qualified opportunity zone in 
        section 1400Z-1 of the Internal 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 workspace, 
                equipment, and connectivity necessary for businesses 
                and entrepreneurs to collaborate and conduct business 
                on a local, regional, national, and international 
                level; and
                    (C) has been operational for not less than 1 year 
                before receiving a grant under this section.
            (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 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.
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