SOAR Act

Bill: 113-s-2850
Sponsor: full_name: Sen. Booker, Cory A. [D-NJ]
Introduced: 2014-09-17
Policy area: Commerce
Subjects: Business investment and capital

Government information and archives

Small business
Latest action: action_date: 2014-09-17
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2014-09-17
action_desc: Introduced in Senate
text: <p>Startup Opportunity Accelerator Act of 2014 or the SOAR Act - Amends the Small Business Act to require the Administrator of the Small Business Administration (SBA) to develop a program to award cash prizes of up to $50,000 to organizations in the United States whose primary purpose is to support new small businesses that have been in operation for five years or less.</p> <p>Authorizes the use of a prize for construction costs, space acquisition, and programmatic purposes. Prohibits its use for capital or professional services to new small businesses.</p> <p>Requires a prize recipient to provide assistance to at least 10 new small businesses per year. </p>

tv_txt: II 113th CONGRESS 2d Session S. 2850 IN THE SENATE OF THE UNITED STATES September 17 (legislative day, September 16), 2014 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.

1. Short title This Act may be cited as the Startup Opportunity Accelerator Act of 2014 or the SOAR Act . 2. 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: 47. Funding for organizations that support startup businesses (a) Definitions In this section— (1) the term eligible entity means an organization— (A) that is located in the United States; and (B) the primary purpose of which is to support new small business concerns; (2) the term new small business concern means a small business concern that has been in operation for not more than 5 years; and (3) 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 of not more than $50,000 to eligible entities to support new small business concerns. (2) Use of funds A prize 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. (c) Requirement for applicants An eligible entity desiring a prize under this section shall demonstrate that the eligible entity will use the prize to provide assistance to not less than 10 new small business concerns per year. (d) Criteria The Administrator shall establish criteria for prizes under this section that 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 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 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 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 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 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) Matching nonpublic funding requirement (1) In general An eligible entity receiving a prize 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 may be made under this section; (B) used to carry out the program of the eligible entity carried out using the prize under this section; and (C) in an amount that is not to be less than 50 percent of the amount of the prize 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. (g) Consequences of failure To abide by terms and conditions of prize or requirements of this section The Administrator shall notify each eligible entity receiving a prize under this section that failure to abide by the terms and conditions of the prize 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 ordering the eligible entity to return the prize funds. (h) Annual progress reporting by recipients of prize Each eligible entity receiving a prize 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, including— (1) the number of new small business concerns participating in the program during each of the previous 3 years; (2) the number of new small business concerns applying to participate in the program during each of the previous 3 years; (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; and (7) other metrics determined appropriate by the Administrator. (i) 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 (h). (j) Coordination with other small business administration programs The Administrator shall take appropriate action to encourage eligible entities receiving a prize 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. ). (k) Listing on website The Administrator shall include a list of eligible entities receiving a prize under this section on the website of the Administration. (l) Authorization of appropriation There are authorized to be appropriated to carry out this section $5,000,000 for each of the first 5 fiscal years beginning after the date of the enactment of this section. .