[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6150 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 6150
To establish the National Minority Business Enterprise Incubator
Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 21, 2006
Mr. Hayworth introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish the National Minority Business Enterprise Incubator
Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Minority Business
Enterprise Incubator Program Act''.
SEC. 2. PURPOSES OF NATIONAL MINORITY BUSINESS ENTERPRISE INCUBATOR
PROGRAM.
The purposes of the National Minority Business Enterprise Incubator
Program are--
(1) to promote economic development and the creation of
wealth and job opportunity in low-income areas and within areas
of economic transition, inclusive of parts of the country with
declining manufacturing bases and among minority individuals
living in such areas through minority business enterprise
incubation centers;
(2) to develop a minority business enterprise incubation
program with the mission of providing focused technical and
managerial assistance to aid in the development of minority
business enterprises;
(3) to make grants to economic development organizations
and other entities for the purpose of providing business
incubation services to minority business enterprises; and
(4) to revitalize and reuse industrial or commercial sites
for entrepreneurship and economic growth.
SEC. 3. NATIONAL MINORITY BUSINESS ENTERPRISE INCUBATOR GRANTS.
(a) In General.--In accordance with the requirements of this
section, the National Director of the Minority Business Development
Agency may make 3-year to 5-year grants to eligible organizations to
establish and operate minority business enterprise incubator programs.
(b) Applications.--To be eligible to receive a grant under this
section, an eligible organization shall submit an application to the
National Director at such time and in such form and manner as the
National Director may require. Each such application shall include the
grantee's plan for establishing and operating a minority business
enterprise incubator program.
(c) Selection of Grantees.--In selecting the grantees under this
section, the National Director shall evaluate and rank applicants in
accordance with predetermined selection criteria that will be stated in
terms of relevant importance of such criteria. The relative importance
of the criteria shall be made publicly available and stated in each
solicitation for applicants made by the National Director. The criteria
shall include the following:
(1) The experience of the applicant in conducting business
development.
(2) The experience of the applicant in technology and
manufacturing.
(3) The extent to which the incubator will assist in the
development of low-income, women, or minority business, or the
revitalization of rural areas, inner cities, central cities, or
depressed manufacturing areas.
(4) The extent to which the proposed site is in an area of
high unemployment and will result in the reuse of a previously
used industrial or commercial site.
(5) The extent to which the applicant has a management team
in place with experience in running a business incubator or
relevant business development experience.
(6) The extent to which the applicant's plan will result in
the economic development of low-income communities or high-
unemployment areas.
(7) The ability of the applicant to successfully establish
and operate a minority business enterprise incubator program.
(8) The ability of the applicant to enter into cooperative
agreements with financial institutions to provide a streamlined
process for business concerns utilizing the minority business
enterprise incubator program to obtain financial assistance.
(9) The ability of the applicant to provide the services of
licensed professionals.
(10) The extent to which the applicant's plan for
establishing and operating a minority business enterprise
incubator program will do the following:
(A) Enhance minority business enterprise
development.
(B) Meet the needs and goals of the community in
which the incubator is to be located.
(C) Serve as a catalyst for further entrepreneurial
development.
(D) Involve the rehabilitation of a warehouse,
factory, or building which has fallen into disrepair.
(E) Assist in redeveloping and reinvesting in an
economically challenged or disadvantaged area.
(F) Target minority and women entrepreneurs.
(G) Focus on the development of manufacturing and
technology.
(H) Retain or create jobs.
(I) Include assistance regarding marketing,
financial management, human resources development, and
access to capital (both debt and equity).
(d) Grant Requirements.--Each grantee shall use the grant funds to
establish a minority business enterprise incubator program, which shall
make the following assistance available (on a shared or unshared basis,
as the grantee may determine) to businesses participating in such
program:
(1) Office space.
(2) Office equipment, including computers, facsimile
machines, photocopiers, access to telecommunications services
(including broadband services), and manufacturing equipment.
(3) Administrative and technical staff.
(4) Training and technical assistance in the areas of
marketing, financial management, human resources, and
contracting.
(5) Assistance in obtaining loans.
(6) Assistance in locating investors and networking with
local business organizations.
(7) Individualized reviews of marketing, financial, and
business plans, which shall occur monthly for such period as
the National Director may determine and quarterly thereafter.
(8) Legal, accounting, and marketing services.
(9) Mentoring program with established, successful, large
businesses to last the duration of the business' stay in the
incubator.
(e) Additional Assistance.--A grantee may use grant funds to
provide family care services to participating business and any other
assistance which is approved by the National Director.
(f) Additional Program Requirements.--
(1) Participating businesses.--Each grantee shall select
the businesses which will participate in the grantee's minority
business enterprise incubation program. The grantee shall
select businesses which have the potential to be self-
sustaining. Each grantee shall require participating businesses
to participate in the technical and managerial training
described in subsection (d)(4), to submit marketing, financial,
and business plans and to participate in the review of such
plans described in subsection (d)(7).
(2) Cooperative agreements with financial institutions.--
Each grantee shall enter into a cooperative agreement with one
or more financial institutions to provide a streamlined process
by which participating businesses may obtain loans.
(3) Fees.--Each grantee may charge participating businesses
a fee for the assistance provided to such business by the
grantee. The amount of such fee shall be determined under a
sliding scale based on the financial success of the
participating business. The grantee may only charge a nominal
fee for the first 2 years of such businesses participation in
the incubator.
(g) Non-Federal Matching Funds.--The National Director shall not
make available any grant funds under this section until the grantee has
contributed non-Federal matching funds in an amount equal to 50 percent
of the amount of such grant funds.
(h) Eligible Organizations.--For purposes of this section, the term
``eligible organization'' means any of the following:
(1) An organization described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code.
(2) A business league, chamber of commerce, or board of
trade described in section 501(c)(6) of the Internal Revenue
Code of 1986 and exempt from tax under section 501(a) of such
Code.
(3) A local development agency that is chartered,
established, or otherwise sanctioned by a State or local
government.
(4) A small business development center (within the meaning
of section 21 of the Small Business Act) or equivalent minority
business enterprise center, as defined by the National
Director.
(5) A college or university.
(6) A unit of State or local government.
(i) Federal Coordination.--The National Director, in consultation
with the Economic Development Administration, the Rural Development
Agency, the Department of Agriculture, the Department of Housing and
Urban Development, the Delta Regional Authority, and the Small Business
Administration, shall--
(1) undertake efforts to coordinate and enhance Federal
programs that relate to minority business enterprise incubation
programs; and
(2) invite State and local governments, lending
institutions, and other appropriate public and private
organizations to serve as intermediaries in outreach efforts
related to minority business enterprise incubation programs.
(j) Reports.--
(1) Initial report.--One year after the first grant is made
under this section, the National Director shall transmit to the
Congress a preliminary report regarding the National Minority
Business Enterprise Incubator Program conducted under this
section.
(2) Final report.--Four years after the first grant is made
under this section, the National Director shall transmit to the
Congress a final report regarding the National Minority
Business Enterprise Incubator Program conducted under this
section. Such report shall include any recommendations of the
National Director regarding ways to improve such program and
the recommendation of the National Director as to whether such
program should be extended.
(k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $25,000,000 for each of fiscal
years 2008 and 2009, which amounts shall remain available until
expended.
SEC. 4. DEFINITION.
As used in this Act, the term ``National Director'' means the
National Director of the Minority Business Development Agency.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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