Innovation and Empowerment for Startups Act

Bill: 118-hr-9486
Sponsor: full_name: Rep. Stansbury, Melanie A. [D-NM-1]
Introduced: 2024-09-06
Policy area: Commerce
Latest action: action_date: 2024-09-06
text: Referred to the House Committee on Small Business.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 9486 IN THE HOUSE OF REPRESENTATIVES September 6, 2024 Ms. Stansbury introduced the following bill; which was referred to the Committee on Small Business A BILL To establish a grant program within the Small Business Administration to provide funds for eligible accelerators or eligible incubators that provide services to small business concerns owned and controlled by women and rural small business concerns, and for other purposes.

1. Short title This Act may be cited as the Innovation and Empowerment for Startups Act . 2. Findings Congress finds the following: (1) There is a growing emphasis to bolster small business concerns owned and controlled by women (as defined in section 3 of the Small Business Act ( 15 U.S.C. 632 )) and rural small business concerns (as defined in this Act). (2) There are significant disparities that lead to unequal outcomes for rural small business concerns and small business concerns owned and controlled by women. (3) Small business concerns owned and controlled by women are less likely than small business concerns owned and controlled by men to obtain funding, even though women and men are equally likely to achieve business success. (4) Rural entrepreneurs are more likely than non-rural entrepreneurs to experience higher costs of doing business, and rural entrepreneurs struggle with more expenses related to running a business. (5) Small business concerns owned and controlled by women and rural small business concerns gain entrepreneurial knowledge, network building, and entrepreneurial self-efficacy during their participation in accelerators and incubators. 3. Grant program for eligible accelerators or eligible incubators that provide services to certain small business concerns (a) Establishment The Administrator of the Small Business Administration, acting though the head of the Office of Entrepreneurial Development of the Administration, shall establish a grant program to provide funds to eligible entities that provide services to small business concerns owned and controlled by women and rural small business concerns. (b) Eligibility To be eligible for a grant under this section, an eligible entity shall submit to the Administrator an application containing the following: (1) The effect the eligible entity has had on the success of small business concerns owned and controlled by women and rural small business concerns. (2) The diversity and inclusivity efforts of the eligible entity with respect to the staff of a small business concern assisted by such eligible entity. (3) The plans of the eligible entity to help ensure the sustainability of a small business concern assisted by such eligible entity. (c) Use of funds A recipient of a grant under this section shall use amounts of such grant for the following: (1) To provide consulting, training, shared facilities and resources, or assistance with access to capital to small business concerns owned and controlled by women and rural small business concerns. (2) To provide workshops, seminars, networking events, and individual consultations to such concerns. (3) To provide educational opportunities to such concerns on topics such as marketing strategy, public relations, website marketing and social media, business planning, financial planning and analysis, and other opportunities, as determined by such recipient. (4) To advertise the services offered by such recipient. (d) Amount An award made under this section shall be for exactly $250,000. (e) Reports (1) To Administrator Not later than 1 year after receipt of an award under this section, a grant recipient shall submit to the Administrator a report that includes the following: (A) Use of grant amounts. (B) The effect of programs or services provided using grant amounts on small business concerns owned and controlled by women or rural small business concerns. (2) To Congress Not later than 1 year after the date of the enactment of this section and every 5 years thereafter until 5 years after the date on which the last grant is made under this section, the Secretary shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report that includes a summary of the activities and outcomes associated with grants made under this section. (f) Monitoring and evaluation The Administrator shall implement procedures to monitor the effectiveness of the program established under this section to determine whether to extend the program. (g) Authorization of appropriations There is authorized to be appropriated to the Administrator of the Small Business Administration $1,250,000,000, to remain available until expended for purposes of carrying out this section, of which 10 percent is authorized to be allocated for grants to covered businesses. (h) Definitions In this section: (1) Covered business The term covered business means a small business concern that is assigned a North American Industry Classification System code as follows: (A) Beginning with 11 (relating to agriculture). (B) Beginning with 7111 (relating to creative industries). (C) Beginning with 7211 (relating to hospitality). (D) Beginning with 7223, 7224, or 7225 (relating to food services). (E) 541611 (relating to management). (F) 711510 (relating to artisans and craft makers). (G) 541211 or 541219 (relating to accounting). (H) 624410 (relating to childcare). (2) Eligible accelerator The term eligible accelerator means an entity that conducts business in the United States and that has a demonstrated track record of successfully— (A) assisting entrepreneurs in starting up or expanding small business concerns owned and controlled by women and rural small business concerns; (B) providing mentorship to such entrepreneurs; (C) facilitating access to capital for such entrepreneurs; and (D) fostering connections, as relevant, among such entrepreneurs. (3) Eligible entity The term eligible entity means an eligible accelerator or an eligible incubator. (4) Eligible incubator The term eligible incubator means an entity that offers shared resources and services for startup businesses, which may include office space, consultants, mentors, technical support, and access to capital. (5) Rural small business concern The term rural small business concern means a small business concern located in a rural area (as defined in section 1393(a)(2) of the Internal Revenue Code of 1986). (6) Small business concern owned and controlled by women The term small business concern owned and controlled by women has the meaning given in section 3(n) of the Small Business Act ( 15 U.S.C. 632(n) ).