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:
(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.
(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.
END
