Native American Business Incubators Program Act
PL 116-174 (S.294), enacted 10/20/2020

[116th Congress Public Law 174]
[From the U.S. Government Publishing Office]



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Public Law 116-174
116th Congress

                                 An Act


 
To establish a business incubators program within the Department of the 
     Interior to promote economic development in Indian reservation 
            communities. <<NOTE: Oct. 20, 2020 -  [S. 294]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Native 
American Business Incubators Program Act.>> 
SECTION 1. <<NOTE: 25 USC 5801 note.>>  SHORT TITLE.

    This Act may be cited as the ``Native American Business Incubators 
Program Act''.
SEC. 2. <<NOTE: 25 USC 5801.>>  FINDINGS.

    Congress finds that--
            (1) entrepreneurs face specific challenges when transforming 
        ideas into profitable business enterprises;
            (2) entrepreneurs that want to provide products and services 
        in reservation communities face an additional set of challenges 
        that requires special knowledge;
            (3) a business incubator is an organization that assists 
        entrepreneurs in navigating obstacles that prevent innovative 
        ideas from becoming viable businesses by providing services that 
        include--
                    (A) workspace and facilities resources;
                    (B) access to capital, business education, and 
                counseling;
                    (C) networking opportunities;
                    (D) mentorship opportunities; and
                    (E) an environment intended to help establish and 
                expand business operations;
            (4) the business incubator model is suited to accelerating 
        entrepreneurship in reservation communities because the business 
        incubator model promotes collaboration to address shared 
        challenges and provides individually tailored services for the 
        purpose of overcoming obstacles unique to each participating 
        business; and
            (5) business incubators will stimulate economic development 
        by providing Native entrepreneurs with the tools necessary to 
        grow businesses that offer products and services to reservation 
        communities.
SEC. 3. <<NOTE: 25 USC 5802.>>  DEFINITIONS.

    In this Act:
            (1) Business incubator.--The term ``business incubator'' 
        means an organization that--
                    (A) provides physical workspace and facilities 
                resources to startups and established businesses; and

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                    (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.
            (2) Eligible applicant.--The term ``eligible applicant'' 
        means an applicant eligible to apply for a grant under section 
        4(b).
            (3) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given the term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304).
            (4) Institution of higher education.--The term ``institution 
        of higher education'' has the meaning given the term in section 
        101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
            (5) Native american; native.--The terms ``Native American'' 
        and ``Native'' have the meaning given the term ``Indian'' in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 5304).
            (6) Native business.--The term ``Native business'' means a 
        business concern that is at least 51-percent owned and 
        controlled by 1 or more Native Americans.
            (7) Native entrepreneur.--The term ``Native entrepreneur'' 
        means an entrepreneur who is a Native American.
            (8) Program.--The term ``program'' means the program 
        established under section 4(a).
            (9) Reservation.--The term ``reservation'' has the meaning 
        given the term in section 3 of the Indian Financing Act of 1974 
        (25 U.S.C. 1452).
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (11) Tribal college or university.--The term ``tribal 
        college or university'' has the meaning given the term ``Tribal 
        College or University'' in section 316(b) of the Higher 
        Education Act of 1965 (20 U.S.C. 1059c(b)).
SEC. 4. <<NOTE: Grants. 25 USC 5803.>>  ESTABLISHMENT OF PROGRAM.

    (a) In General.--The Secretary shall establish a program in the 
Office of Indian Energy and Economic Development under which the 
Secretary shall provide financial assistance in the form of competitive 
grants to eligible applicants for the establishment and operation of 
business incubators that serve reservation communities by providing 
business incubation and other business services to Native businesses and 
Native entrepreneurs.
    (b) Eligible Applicants.--
            (1) In general.--To be eligible to receive a grant under the 
        program, an applicant shall--
                    (A) be--
                          (i) an Indian tribe;
                          (ii) a tribal college or university;
                          (iii) an institution of higher education; or
                          (iv) a private nonprofit organization or 
                      tribal nonprofit organization that--

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                                    (I) provides business and financial 
                                technical assistance; and
                                    (II) will commit to serving 1 or 
                                more reservation communities;
                    (B) be able to provide the physical workspace, 
                equipment, and connectivity necessary for Native 
                businesses and Native entrepreneurs to collaborate and 
                conduct business on a local, regional, national, and 
                international level; and
                    (C) <<NOTE: Time period.>>  in the case of an entity 
                described in clauses (ii) through (iv) of subparagraph 
                (A), have been operational for not less than 1 year 
                before receiving a grant under the program.
            (2) Joint project.--
                    (A) In general.--Two or more entities may submit a 
                joint application for a project that combines the 
                resources and expertise of those entities at a physical 
                location dedicated to assisting Native businesses and 
                Native entrepreneurs under the program.
                    (B) Contents.--A joint application submitted under 
                subparagraph (A) shall--
                          (i) <<NOTE: Certification.>>  contain a 
                      certification that each participant of the joint 
                      project is one of the eligible entities described 
                      in paragraph (1)(A); and
                          (ii) demonstrate that together the 
                      participants meet the requirements of 
                      subparagraphs (B) and (C) of paragraph (1).

    (c) Application and Selection Process.--
            (1) Application requirements.--Each eligible applicant 
        desiring a grant under the program shall submit to the Secretary 
        an application at such time, in such manner, and containing such 
        information as the Secretary may require, including--
                    (A) <<NOTE: Certification.>>  a certification that 
                the applicant--
                          (i) is an eligible applicant;
                          (ii) will designate an executive director or 
                      program manager, if such director or manager has 
                      not been designated, to manage the business 
                      incubator; and
                          (iii) agrees--
                                    (I) <<NOTE: Evaluation.>>  to a site 
                                evaluation by the Secretary as part of 
                                the final selection process;
                                    (II) to an annual programmatic and 
                                financial examination for the duration 
                                of the grant; and
                                    (III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to the site 
                                evaluation under subclause (I) or an 
                                examination under subclause (II);
                    (B) a description of the 1 or more reservation 
                communities to be served by the business incubator;
                    (C) <<NOTE: Time period. Plan.>>  a 3-year plan that 
                describes--
                          (i) the number of Native businesses and Native 
                      entrepreneurs to be participating in the business 
                      incubator;
                          (ii) whether the business incubator will focus 
                      on a particular type of business or industry;

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                          (iii) a detailed breakdown of the services to 
                      be offered to Native businesses and Native 
                      entrepreneurs participating in the business 
                      incubator; and
                          (iv) a detailed breakdown of the services, if 
                      any, to be offered to Native businesses and Native 
                      entrepreneurs not participating in the business 
                      incubator;
                    (D) information demonstrating the effectiveness and 
                experience of the eligible applicant in--
                          (i) conducting financial, management, and 
                      marketing assistance programs designed to educate 
                      or improve the business skills of current or 
                      prospective businesses;
                          (ii) working in and providing services to 
                      Native American communities;
                          (iii) providing assistance to entities 
                      conducting business in reservation communities;
                          (iv) providing technical assistance under 
                      Federal business and entrepreneurial development 
                      programs for which Native businesses and Native 
                      entrepreneurs are eligible; and
                          (v) managing finances and staff effectively; 
                      and
                    (E) a site description of the location at which the 
                eligible applicant will provide physical workspace, 
                including a description of the technologies, equipment, 
                and other resources that will be available to Native 
                businesses and Native entrepreneurs participating in the 
                business incubator.
            (2) Evaluation considerations.--
                    (A) In general.--In evaluating each application, the 
                Secretary shall consider--
                          (i) the ability of the eligible applicant--
                                    (I) to operate a business incubator 
                                that effectively imparts 
                                entrepreneurship and business skills to 
                                Native businesses and Native 
                                entrepreneurs, as demonstrated by the 
                                experience and qualifications of the 
                                eligible applicant;
                                    (II) to commence providing services 
                                within a minimum period of time, to be 
                                determined by the Secretary; and
                                    (III) to provide quality incubation 
                                services to a significant number of 
                                Native businesses and Native 
                                entrepreneurs;
                          (ii) the experience of the eligible applicant 
                      in providing services in Native American 
                      communities, including in the 1 or more 
                      reservation communities described in the 
                      application; and
                          (iii) the proposed location of the business 
                      incubator.
                    (B) Priority.--
                          (i) In general.--In evaluating the proposed 
                      location of the business incubator under 
                      subparagraph (A)(iii), the Secretary shall--
                                    (I) consider the program goal of 
                                achieving broad geographic distribution 
                                of business incubators; and

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                                    (II) except as provided in clause 
                                (ii), give priority to eligible 
                                applicants that will provide business 
                                incubation services on or near the 
                                reservation of the 1 or more communities 
                                that were described in the application.
                          (ii) <<NOTE: Determination.>>  Exception.--The 
                      Secretary may give priority to an eligible 
                      applicant that is not located on or near the 
                      reservation of the 1 or more communities that were 
                      described in the application if the Secretary 
                      determines that--
                                    (I) the location of the business 
                                incubator will not prevent the eligible 
                                applicant from providing quality 
                                business incubation services to Native 
                                businesses and Native entrepreneurs from 
                                the 1 or more reservation communities to 
                                be served; and
                                    (II) siting the business incubator 
                                in the identified location will serve 
                                the interests of the 1 or more 
                                reservation communities to be served.
            (3) Site evaluation.--
                    (A) In general.--Before making a grant to an 
                eligible applicant, the Secretary shall conduct a site 
                visit, evaluate a video submission, or evaluate a 
                written site proposal (if the applicant is not yet in 
                possession of the site) of the proposed site to ensure 
                the proposed site will permit the eligible applicant to 
                meet the requirements of the program.
                    (B) Written site proposal.--A written site proposal 
                shall meet the requirements described in paragraph 
                (1)(E) and contain--
                          (i) sufficient detail for the Secretary to 
                      ensure in the absence of a site visit or video 
                      submission that the proposed site will permit the 
                      eligible applicant to meet the requirements of the 
                      program; and
                          (ii) <<NOTE: Timeline.>>  a timeline 
                      describing when the eligible applicant will be--
                                    (I) in possession of the proposed 
                                site; and
                                    (II) operating the business 
                                incubator at the proposed site.
                    (C) <<NOTE: Deadline.>>  Followup.--Not later than 1 
                year after awarding a grant to an eligible applicant 
                that submits an application with a written site 
                proposal, the Secretary shall conduct a site visit or 
                evaluate a video submission of the site to ensure the 
                site is consistent with the written site proposal.

    (d) Administration.--
            (1) Duration.--Each grant awarded under the program shall be 
        for a term of 3 years.
            (2) Payment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall disburse grant funds awarded to 
                an eligible applicant in annual installments.
                    (B) More frequent disbursements.--On request by the 
                applicant, the Secretary may make disbursements of grant 
                funds more frequently than annually, on the condition 
                that disbursements shall be made not more frequently 
                than quarterly.
            (3) Non-federal contributions for initial assistance.--

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                    (A) In general.--Except as provided in subparagraph 
                (B), an eligible applicant that receives a grant under 
                the program shall provide non-Federal contributions in 
                an amount equal to not less than 25 percent of the grant 
                amount disbursed each year.
                    (B) <<NOTE: Determination.>>  Waiver.--The Secretary 
                may waive, in whole or in part, the requirements of 
                subparagraph (A) with respect to an eligible applicant 
                if, after considering the ability of the eligible 
                applicant to provide non-Federal contributions, the 
                Secretary determines that--
                          (i) the proposed business incubator will 
                      provide quality business incubation services; and
                          (ii) the 1 or more reservation communities to 
                      be served are unlikely to receive similar services 
                      because of remoteness or other reasons that 
                      inhibit the provision of business and 
                      entrepreneurial development services.
            (4) Renewals.--
                    (A) <<NOTE: Time period.>>  In general.--The 
                Secretary may renew a grant award under the program for 
                a term not to exceed 3 years.
                    (B) <<NOTE: Determination.>>  Considerations.--In 
                determining whether to renew a grant award, the 
                Secretary shall consider with respect to the eligible 
                applicant--
                          (i) the results of the annual evaluations of 
                      the eligible applicant under subsection (f)(1);
                          (ii) the performance of the business incubator 
                      of the eligible applicant, as compared to the 
                      performance of other business incubators receiving 
                      assistance under the program;
                          (iii) whether the eligible applicant continues 
                      to be eligible for the program; and
                          (iv) the evaluation considerations for initial 
                      awards under subsection (c)(2).
                    (C) Non-federal contributions for renewals.--An 
                eligible applicant that receives a grant renewal under 
                subparagraph (A) shall provide non-Federal contributions 
                in an amount equal to not less than 33 percent of the 
                total amount of the grant.
            (5) No duplicative grants.--An eligible applicant shall not 
        be awarded a grant under the program that is duplicative of 
        existing Federal funding from another source.

    (e) Program Requirements.--
            (1) Use of funds.--An eligible applicant receiving a grant 
        under the program may use grant amounts--
                    (A) to provide physical workspace and facilities for 
                Native businesses and Native entrepreneurs participating 
                in the business incubator;
                    (B) to establish partnerships with other 
                institutions and entities to provide comprehensive 
                business incubation services to Native businesses and 
                Native entrepreneurs participating in the business 
                incubator; and
                    (C) for any other uses typically associated with 
                business incubators that the Secretary determines to be 
                appropriate and consistent with the purposes of the 
                program.
            (2) Minimum requirements.--Each eligible applicant receiving 
        a grant under the program shall--

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                    (A) offer culturally tailored incubation services to 
                Native businesses and Native entrepreneurs;
                    (B) use a competitive process for selecting Native 
                businesses and Native entrepreneurs to participate in 
                the business incubator;
                    (C) provide physical workspace that permits Native 
                businesses and Native entrepreneurs to conduct business 
                and collaborate with other Native businesses and Native 
                entrepreneurs;
                    (D) provide entrepreneurship and business skills 
                training and education to Native businesses and Native 
                entrepreneurs including--
                          (i) financial education, including training 
                      and counseling in--
                                    (I) applying for and securing 
                                business credit and investment capital;
                                    (II) preparing and presenting 
                                financial statements; and
                                    (III) managing cash flow and other 
                                financial operations of a business;
                          (ii) management education, including training 
                      and counseling in planning, organization, 
                      staffing, directing, and controlling each major 
                      activity or function of a business or startup; and
                          (iii) marketing education, including training 
                      and counseling in--
                                    (I) identifying and segmenting 
                                domestic and international market 
                                opportunities;
                                    (II) preparing and executing 
                                marketing plans;
                                    (III) locating contract 
                                opportunities;
                                    (IV) negotiating contracts; and
                                    (V) using varying public relations 
                                and advertising techniques;
                    (E) provide direct mentorship or assistance finding 
                mentors in the industry in which the Native business or 
                Native entrepreneur operates or intends to operate; and
                    (F) provide access to networks of potential 
                investors, professionals in the same or similar fields, 
                and other business owners with similar businesses.
            (3) Technology.--Each eligible applicant shall leverage 
        technology to the maximum extent practicable to provide Native 
        businesses and Native entrepreneurs with access to the 
        connectivity tools needed to compete and thrive in 21st-century 
        markets.

    (f) Oversight.--
            (1) <<NOTE: Deadline. Reports.>>  Annual evaluations.--Not 
        later than 1 year after the date on which the Secretary awards a 
        grant to an eligible applicant under the program, and annually 
        thereafter for the duration of the grant, the Secretary shall 
        conduct an evaluation of, and prepare a report on, the eligible 
        applicant, which shall--
                    (A) describe the performance of the eligible 
                applicant; and
                    (B) be used in determining the ongoing eligibility 
                of the eligible applicant.
            (2) Annual report.--
                    (A) In general.--Not later than 1 year after the 
                date on which the Secretary awards a grant to an 
                eligible

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                applicant under the program, and annually thereafter for 
                the duration of the grant, each eligible applicant 
                receiving an award under the program shall submit to the 
                Secretary a report describing the services the eligible 
                applicant provided under the program during the 
                preceding year.
                    (B) Report content.--The report described in 
                subparagraph (A) shall include--
                          (i) a detailed breakdown of the Native 
                      businesses and Native entrepreneurs receiving 
                      services from the business incubator, including, 
                      for the year covered by the report--
                                    (I) the number of Native businesses 
                                and Native entrepreneurs participating 
                                in or receiving services from the 
                                business incubator and the types of 
                                services provided to those Native 
                                businesses and Native entrepreneurs;
                                    (II) the number of Native businesses 
                                and Native entrepreneurs established and 
                                jobs created or maintained; and
                                    (III) the performance of Native 
                                businesses and Native entrepreneurs 
                                while participating in the business 
                                incubator and after graduation or 
                                departure from the business incubator; 
                                and
                          (ii) any other information the Secretary may 
                      require to evaluate the performance of a business 
                      incubator to ensure appropriate implementation of 
                      the program.
                    (C) Limitations.--To the maximum extent practicable, 
                the Secretary shall not require an eligible applicant to 
                report under subparagraph (A) information provided to 
                the Secretary by the eligible applicant under other 
                programs.
                    (D) Coordination.--The Secretary shall coordinate 
                with the heads of other Federal agencies to ensure that, 
                to the maximum extent practicable, the report content 
                and form under subparagraphs (A) and (B) are consistent 
                with other reporting requirements for Federal programs 
                that provide business and entrepreneurial assistance.
            (3) Report to congress.--
                    (A) In general.--Not later than 2 years after the 
                date on which the Secretary first awards funding under 
                the program, and biennially thereafter, the Secretary 
                shall submit to the Committee on Indian Affairs of the 
                Senate and the Committee on Natural Resources of the 
                House of Representatives a report on the performance and 
                effectiveness of the program.
                    (B) Contents.--Each report submitted under 
                subparagraph (A) shall--
                          (i) account for each program year; and
                          (ii) include with respect to each business 
                      incubator receiving grant funds under the 
                      program--
                                    (I) the number of Native businesses 
                                and Native entrepreneurs that received 
                                business incubation or other services;
                                    (II) the number of businesses 
                                established with the assistance of the 
                                business incubator;

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                                    (III) the number of jobs established 
                                or maintained by Native businesses and 
                                Native entrepreneurs receiving business 
                                incubation services, including a 
                                description of where the jobs are 
                                located with respect to reservation 
                                communities;
                                    (IV) to the maximum extent 
                                practicable, the amount of capital 
                                investment and loan financing accessed 
                                by Native businesses and Native 
                                entrepreneurs receiving business 
                                incubation services; and
                                    (V) an evaluation of the overall 
                                performance of the business incubator.
SEC. 5. <<NOTE: Deadline. 25 USC 5804.>>  REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary shall promulgate regulations to implement the program.
SEC. 6. <<NOTE: 25 USC 5805.>>  SCHOOLS TO BUSINESS INCUBATOR 
                    PIPELINE.

    The Secretary shall facilitate the establishment of relationships 
between eligible applicants receiving funds through the program and 
educational institutions serving Native American communities, including 
tribal colleges and universities.
SEC. 7. <<NOTE: Coordination. 25 USC 5806.>>  AGENCY PARTNERSHIPS.

    The Secretary shall coordinate with the Secretary of Agriculture, 
the Secretary of Commerce, the Secretary of the Treasury, and the 
Administrator of the Small Business Administration to ensure, to the 
maximum extent practicable, that business incubators receiving grant 
funds under the program have the information and materials needed to 
provide Native businesses and Native entrepreneurs with the information 
and assistance necessary to apply for business and entrepreneurial 
development programs administered by the Department of Agriculture, the 
Department of Commerce, the Department of the Treasury, and the Small 
Business Administration.
SEC. 8. <<NOTE: 25 USC 5807.>>  AUTHORIZATIONS OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the program 
$5,000,000 for each of fiscal years 2020 through 2024.

    Approved October 20, 2020.

LEGISLATIVE HISTORY--S. 294:
---------------------------------------------------------------------------

SENATE REPORTS: No. 116-29 (Comm. on Indian Affairs).
CONGRESSIONAL RECORD:
                                                        Vol. 165 (2019):
                                    June 27, considered and passed 
                                        Senate.
                                                        Vol. 166 (2020):
                                    Sept. 21, considered and passed 
                                        House.

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