Accelerate Our Startups Act of 2017

Bill: 115-hr-2393
Sponsor: full_name: Rep. Schneider, Bradley Scott [D-IL-10]
Introduced: 2017-05-04
Policy area: Commerce
Subjects: Business investment and capital

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Latest action: action_date: 2017-05-04
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2017-05-04
action_desc: Introduced in House
text: <p><b>Accelerate Our Startups Act of 2017</b></p> <p> This bill amends the Small Business Act to direct the Small Business Administration (SBA) to develop and implement a grant program for state and local governmental and other nonprofit organizations located in the United States that support startup businesses by providing assistance for construction costs, space acquisition, and programmatic purposes. </p> <p>A grant recipient must: (1) demonstrate that it will use the grant to provide assistance to at least five client businesses per year that have been in business for less than five years, (2) require client businesses to pay an entry fee to participate in the program, and (3) submit annual progress reports.</p> <p>The SBA shall: (1) establish grant criteria favoring recipients that provide startups with office, manufacturing, or warehouse space, access to capital and professional services, and a formal structured mentorship or developmental program that assists with building business skills and competencies; and (2) in determining whether to make a grant, take into account promoting growth in underserviced areas with sufficient population density and the organization's entrepreneurial leadership experience, ability to utilize and leverage local strengths, and record with regard to client business participation. </p> <p>The SBA must condition receipt of a grant under this bill on the recipient obtaining matching funding for the same purposes from a local or state government grant and nonpublic funding.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 2393 IN THE HOUSE OF REPRESENTATIVES May 4, 2017 Mr. Schneider introduced the following bill; which was referred to the Committee on Small Business A BILL To create a grant program for governmental and other nonprofit 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 Accelerate Our Startups Act of 2017 . 2. Grants for nonprofit organizations that support startup businesses (a) Grants The Administrator of the Small Business Administration (hereinafter the Administrator ) shall develop and implement, beginning not later than one year after the date of the enactment of this section, a grant program under this section for State and local governmental and other nonprofit organizations that are located in the United States and support startup businesses in the United States to provide those organizations assistance to use for construction costs, space acquisition, and programmatic purposes. (b) Requirement for recipients A recipient of a grant under this section must demonstrate to the satisfaction of the Administrator that it will use the grant to provide assistance to at least 5 client businesses per year that have been in business for less than 5 years. (c) Criteria for grants The Administrator shall establish criteria for grants under this section favoring recipients that provide startups the following: (1) Office, manufacturing, or warehouse space, including appropriate operations infrastructure. (2) Access to capital (either directly from the organization or through guidance and contacts for acquiring capital from outside investors), except that such capital may not be made available from the grant funds (including by making subgrants). (3) Access to professional services (either directly from the organization or guidance and contacts for acquiring those services) including accounting and legal services, except that litigation expenses may not be made available from the grant funds. (4) A formal structured mentorship or developmental program that assists startups with building business skills and competencies. (d) Considerations To be applied in choosing recipients In determining whether or not to make a grant under this section to an organization, the Administrator shall take into account the following: (1) If the organization is an existing organization, the previous record of that organization, as measured by— (A) the number of participating client businesses each of the previous 3 years, if applicable; (B) the number of businesses applying each of the previous 3 years, if applicable; (C) the retention rate of client businesses; (D) the average duration of client business participation in program; total, average, and median capital raised by participation client businesses; (E) the total, average, and median number of employees of participating client businesses; and (F) other metrics deemed appropriate by the Administrator. (2) Promoting growth in underserviced geographic areas with sufficient population density. (3) How experienced the entrepreneurial leadership of the organization is. (4) The ability of the organization to utilize and leverage local strengths, including human resources, infrastructure, or educational institutions. (e) Requirement of fee paid by participating startups Each recipient of a grant under this section shall require each participating client business in the program assisted under this section to pay, at minimum, an entry fee for participation in the program. (f) Matching public funding requirement The Administrator shall require as condition of grant under this section, that the recipient obtain a grant from a local or State government for the same purposes as a grant may be made under this section, to carry out the program of the recipient assisted under this section. The amount of that grant from a local or State government may not be less than 1/2 the amount received by that recipient under this section. (g) Matching nonpublic funding requirement The Administrator shall require as condition of grant under this section, that the recipient obtain nonpublic (defined as private or nonprofit) funding for the same purposes as a grant may be made under this section, to carry out the program of the recipient assisted under this section. The amount of that funding from a nonpublic source may not be less than 1/2 the amount received by that recipient under this section. (h) Consequences of failure To abide by terms and conditions of grant or requirements of this section Each recipient shall be notified that failure to abide by the terms and conditions of the 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 recapture by the Small Business Administration of the grant funds. (i) Annual progress reporting by recipients of grants Each recipient of a grant under this section shall annually report to the Administrator on the progress of the program assisted under this section, including— (1) the number of participating client businesses each of the previous 3 years, if applicable; (2) the number of businesses applying each of the previous 3 years, if applicable; (3) the retention rate of client businesses; (4) the average duration of client business participation in program; (5) the total, average, and median capital raised by participation client businesses; (6) the total, average, and median number of employees of participating client businesses; and (7) other metrics deemed appropriate by the Administrator. (j) Report to congress The Administrator shall report annually to Congress the Administrator’s assessment of the effectiveness of the grant program under this section including the metrics listed in subsection (i). (k) Coordination with other small business administration programs The Administrator shall take appropriate action to encourage grantees under this section to utilize and incorporate Small Business Administration programs, such as Small Business Development Centers; Small Business Investment Companies, section 7(a) loans, and section 504 loans. (l) Listing on website The Administrator shall include a list of recipients of the grants under this section on the Small Business Administration website. (m) Definition In this section, the term State includes the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States. (n) Authorization of appropriation There are authorized to be appropriated to the Administrator to carry out this section $5,000,000 for each fiscal year beginning with the first fiscal year that begins after the date of the enactment of this Act and each of the succeeding 4 fiscal years.