Incubator Act of 2019

Bill: 116-hr-4931
Sponsor: full_name: Rep. Ryan, Tim [D-OH-13]
Introduced: 2019-10-30
Policy area: Commerce
Subjects: Business investment and capital

Congressional oversight

Economic development

Government Operations and Politics

Performance measurement
Latest action: action_date: 2019-10-31
text: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.

Summaries:
action_date: 2019-10-30
action_desc: Introduced in House
text: <p><b>Incubator Act of 2019</b></p> <p>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.</p> <p>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.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4931 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.

1. Short title This Act may be cited as the Incubator Act of 2019 . 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.