To promote the development of Native American small business concerns, and for other purposes.

October 21, 2005

Mr. JOHNSON (for himself, Ms. CANTWELL, Mr. DORGAN, Mr. INOUYE, Mr. KERRY, Mrs. MURRAY, Mr. SMITH, and Ms. STABENOW) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

To promote the development of Native American small business concerns, and for other purposes.

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 `Native American Small Business Development Act of 2005'.

SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

The Small Business Act (15 U.S.C. 631 et seq.) is amended--

(1) by redesignating section 37 as section 38; and

(2) by inserting after section 36 the following:

`SEC. 37. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

`(a) DEFINITIONS- As used in this section--

`(1) the term `Alaska Native' has the same meaning as the term `Native' in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b));

`(2) the term `Alaska Native corporation' has the same meaning as the term `Native Corporation' in section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));

`(3) the term `Assistant Administrator' means the Assistant Administrator of the Office of Native American Affairs established under subsection (b);

`(4) the terms `center' and `Native American business center' mean a center established under subsection (c);

`(5) the term `Native American business development center' means an entity providing business development assistance to federally recognized tribes and Native Americans under a grant from the Minority Business Development Agency of the Department of Commerce;

`(6) the term `Native American small business concern' means a small business concern that is owned and controlled by--

`(A) a member of an Indian tribe or tribal government;

`(B) an Alaska Native or Alaska Native corporation; or

`(C) a Native Hawaiian or Native Hawaiian organization;

`(7) the term `Native Hawaiian' has the same meaning as in section 625 of the Older Americans Act of 1965 (42 U.S.C. 3057k);

`(8) the term `Native Hawaiian organization' has the same meaning as in section 8(a)(15);

`(9) the term `tribal college' has the same meaning as the term `tribally controlled college or university' has in section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801(a)(4));

`(10) the term `tribal government' has the same meaning as the term `Indian tribe' has in section 7501(a)(9) of title 31, United States Code; and

`(11) the term `tribal lands' means all lands within the exterior boundaries of any Indian reservation.

`(b) OFFICE OF NATIVE AMERICAN AFFAIRS-

`(1) ESTABLISHMENT- There is established within the Administration the Office of Native American Affairs, which, under the direction of the Assistant Administrator, shall implement the Administration's programs for the development of business enterprises by Native Americans.

`(2) PURPOSE- The purpose of the Office of Native American Affairs is to assist Native American entrepreneurs to--

`(A) start, operate, and grow small business concerns;

`(B) develop management and technical skills;

`(C) seek Federal procurement opportunities;

`(D) increase employment opportunities for Native Americans through the start and expansion of small business concerns; and

`(E) increase the access of Native Americans to capital markets.

`(3) ASSISTANT ADMINISTRATOR-

`(A) APPOINTMENT- The Administrator shall appoint a qualified individual to serve as Assistant Administrator of the Office of Native American Affairs in accordance with this paragraph.

`(B) QUALIFICATIONS- The Assistant Administrator appointed under subparagraph (A) shall have--

`(i) knowledge of the Native American culture; and

`(ii) experience providing culturally tailored small business development assistance to Native Americans.

`(C) EMPLOYMENT STATUS- The Assistant Administrator shall be a Senior Executive Service position under section 3132(a)(2) of title 5, United States Code, and shall serve as a noncareer appointee, as defined in section 3132(a)(7) of title 5, United States Code.

`(D) RESPONSIBILITIES AND DUTIES- The Assistant Administrator shall--

`(i) administer and manage the Native American Small Business Development program established under this section;

`(ii) recommend the annual administrative and program budgets for the Office of Native American Affairs;

`(iii) consult with Native American business centers in carrying out the program established under this section;

`(iv) recommend appropriate funding levels;

`(v) review the annual budgets submitted by each applicant for the Native American Small Business Development program;

`(vi) select applicants to participate in the program under this section;

`(vii) implement this section; and

`(viii) maintain a clearinghouse to provide for the dissemination and exchange of information between Native American business centers.

`(E) CONSULTATION REQUIREMENTS- In carrying out the responsibilities and duties described in this paragraph, the Assistant Administrator shall confer with and seek the advice of--

`(i) Administration officials working in areas served by Native American business centers and Native American business development centers;

`(ii) the Bureau of Indian Affairs of the Department of the Interior;

`(iii) tribal governments;

`(iv) tribal colleges;

`(v) Alaska Native corporations; and

`(vi) Native Hawaiian organizations.

`(c) NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM-

`(1) AUTHORIZATION-

`(A) IN GENERAL- The Administration, through the Office of Native American Affairs, shall provide financial assistance to tribal governments, tribal colleges, Native Hawaiian organizations, and Alaska Native corporations to create Native American business centers in accordance with this section.

`(B) USE OF FUNDS- The financial and resource assistance provided under this subsection shall be used to overcome obstacles impeding the creation, development, and expansion of small business concerns, in accordance with this section, by--

`(i) reservation-based American Indians;

`(ii) Alaska Natives; and

`(iii) Native Hawaiians.

`(2) 5-YEAR PROJECTS-

`(A) IN GENERAL- Each Native American business center that receives assistance under paragraph (1)(A) shall conduct 5-year projects that offer culturally tailored business development assistance in the form of--

`(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 concern;

`(ii) management education, including training and counseling in planning, organizing, staffing, directing, and controlling each major activity and function of a small business concern; 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) developing pricing strategies;

`(IV) locating contract opportunities;

`(V) negotiating contracts; and

`(VI) utilizing varying public relations and advertising techniques.

`(B) BUSINESS DEVELOPMENT ASSISTANCE RECIPIENTS- The business development assistance under subparagraph (A) shall be offered to prospective and current owners of small business concerns that are owned by--

`(i) American Indians or tribal governments, and located on or near tribal lands;

`(ii) Alaska Natives or Alaska Native corporations; or

`(iii) Native Hawaiians or Native Hawaiian organizations.

`(3) FORM OF FEDERAL FINANCIAL ASSISTANCE-

`(A) DOCUMENTATION-

`(i) IN GENERAL- The financial assistance to Native American business centers authorized under this subsection may be made by grant, contract, or cooperative agreement.

`(ii) EXCEPTION- Financial assistance under this subsection to Alaska Native corporations or Native Hawaiian organizations may only be made by grant.

`(B) PAYMENTS-

`(i) TIMING- Payments made under this subsection may be disbursed in an annual lump sum or in periodic installments, at the request of the recipient.

`(ii) ADVANCE- The Administration may disburse not more than 25 percent of the annual amount of Federal financial assistance awarded to a Native American small business center after notice of the award has been issued.

`(iii) NO MATCHING REQUIREMENT- The Administration shall not require a grant recipient to match grant funding received under this subsection with non-Federal resources as a condition of receiving the grant.

`(4) CONTRACT AND COOPERATIVE AGREEMENT AUTHORITY- A Native American business center may enter into a contract or cooperative agreement with a Federal department or agency to provide specific assistance to Native American and other under-served small business concerns located on or near tribal lands, to the extent that such contract or cooperative agreement is consistent with the terms of any assistance received by the Native American business center from the Administration.

`(5) APPLICATION PROCESS-

`(A) SUBMISSION OF A 5-YEAR PLAN- Each applicant for assistance under paragraph (1) shall submit a 5-year plan to the Administration on proposed assistance and training activities.

`(B) CRITERIA-

`(i) IN GENERAL- The Administration shall evaluate and rank applicants in accordance with predetermined selection criteria that shall be stated in terms of relative importance.

`(ii) PUBLIC NOTICE- The criteria required by this paragraph and their relative importance shall be made publicly available, within a reasonable time, and stated in each solicitation for applications made by the Administration.

`(iii) CONSIDERATIONS- The criteria required by this paragraph shall include--

`(I) the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of current or potential owners of Native American small business concerns;

`(II) the ability of the applicant to commence a project within a minimum amount of time;

`(III) the ability of the applicant to provide quality training and services to a significant number of Native Americans;

`(IV) previous assistance from the Small Business Administration to provide services in Native American communities; and

`(V) the proposed location for the Native American business center site, with priority given based on the proximity of the center to the population being served and to achieve a broad geographic dispersion of the centers.

`(6) PROGRAM EXAMINATION-

`(A) IN GENERAL- Each Native American business center established pursuant to this subsection shall annually provide the Administration with an itemized cost breakdown of actual expenditures incurred during the preceding year.

`(B) ADMINISTRATION ACTION- Based on information received under subparagraph (A), the Administration shall--

`(i) develop and implement an annual programmatic and financial examination of each Native American business center assisted pursuant to this subsection; and

`(ii) analyze the results of each examination conducted under clause (i) to determine the programmatic and financial viability of each Native American business center.

`(C) CONDITIONS FOR CONTINUED FUNDING- In determining whether to renew a grant, contract, or cooperative agreement with a Native American business center, the Administration--

`(i) shall consider the results of the most recent examination of the center under subparagraph (B), and, to a lesser extent, previous examinations; and

`(ii) may withhold such renewal, if the Administration determines that--

`(I) the center has failed to provide adequate information required to be provided under subparagraph (A), or the information provided by the center is inadequate; or

`(II) the center has failed to provide adequate information required to be provided by the center for purposes of the report of the Administration under subparagraph (E).

`(D) CONTINUING CONTRACT AND COOPERATIVE AGREEMENT AUTHORITY-

`(i) IN GENERAL- The authority of the Administrator to enter into contracts or cooperative agreements in accordance with this subsection shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts.

`(ii) RENEWAL- After the Administrator has entered into a contract or cooperative agreement with any Native American business center under this subsection, it shall not suspend, terminate, or fail to renew or extend any such contract or cooperative agreement unless the Administrator provides the center with written notification setting forth the reasons therefore and affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.

`(E) MANAGEMENT REPORT-

`(i) IN GENERAL- The Administration shall prepare and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an annual report on the effectiveness of all projects conducted by Native American business centers under this subsection and any pilot programs administered by the Office of Native American Affairs.

`(ii) CONTENTS- Each report submitted under clause (i) shall include, with respect to each Native American business center receiving financial assistance under this subsection--

`(I) the number of individuals receiving assistance from the Native American business center;

`(II) the number of startup business concerns created;

`(III) the number of existing businesses seeking to expand employment;

`(IV) jobs created or maintained, on an annual basis, by Native American small business concerns assisted by the center since receiving funding under this Act;

`(V) to the maximum extent practicable, the capital investment and loan financing utilized by emerging and expanding businesses that were assisted by a Native American business center; and

`(VI) the most recent examination, as required under subparagraph (B), and the subsequent determination made by the Administration under that subparagraph.

`(7) ANNUAL REPORT- Each entity receiving financial assistance under this subsection shall annually report to the Administration on the services provided with such financial assistance, including--

`(A) the number of individuals assisted, categorized by ethnicity;

`(B) the number of hours spent providing counseling and training for those individuals;

`(C) the number of startup small business concerns created or maintained;

`(D) the gross receipts of assisted small business concerns;

`(E) the number of jobs created or maintained at assisted small business concerns; and

`(F) the number of Native American jobs created or maintained at assisted small business concerns.

`(8) RECORD RETENTION-

`(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.

`(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (6)(A) indefinitely.

`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated $5,000,000 for each of the fiscal years 2006 through 2010, to carry out the Native American Small Business Development Program, authorized under subsection (c).'.

SEC. 3. PILOT PROGRAMS.

(a) DEFINITIONS- In this section, the following definitions shall apply:

(1) INCORPORATION BY REFERENCE- The terms defined in section 37(a) of the Small Business Act (as added by this Act) have the same meanings as in that section 37(a) when used in this section.

(2) JOINT PROJECT- The term `joint project' means the combined resources and expertise of 2 or more distinct entities at a physical location dedicated to assisting the Native American community.

(b) NATIVE AMERICAN DEVELOPMENT GRANT PILOT PROGRAM-

(1) AUTHORIZATION-

(A) IN GENERAL- There is established a 4-year pilot program under which the Administration is authorized to award Native American development grants to provide culturally tailored business development training and related services to Native Americans and Native American small business concerns.

(B) ELIGIBLE ORGANIZATIONS- The grants authorized under subparagraph (A) may be awarded to--

(i) any small business development center; or

(ii) any private, nonprofit organization that--

(I) has members of an Indian tribe comprising a majority of its board of directors;

(II) is a Native Hawaiian organization; or

(III) is an Alaska Native corporation.

(C) AMOUNTS- The Administration shall not award a grant under this subsection in an amount which exceeds $100,000 for each year of the project.

(D) GRANT DURATION- Each grant under this subsection shall be awarded for not less than a 2-year period and not more than a 4-year period.

(2) CONDITIONS FOR PARTICIPATION- Each entity desiring a grant under this subsection shall submit an application to the Administration that contains--

(A) a certification that the applicant--

(i) is a small business development center or a private, nonprofit organization under paragraph (1)(B)(i);

(ii) employs an executive director or program manager to manage the facility; and

(iii) agrees--

(I) to a site visit as part of the final selection process;

(II) to an annual programmatic and financial examination; and

(III) to the maximum extent practicable, to remedy any problems identified pursuant to that site visit or examination;

(B) information demonstrating that the applicant has the ability and resources to meet the needs, including cultural needs, of the Native Americans to be served by the grant;

(C) information relating to proposed assistance that the grant will provide, including--

(i) the number of individuals to be assisted; and

(ii) the number of hours of counseling, training, and workshops to be provided;

(D) information demonstrating the effective experience of the applicant in--

(i) conducting financial, management, and marketing assistance programs designed to impart or upgrade the business skills of current or prospective Native American business owners;

(ii) providing training and services to a representative number of Native Americans;

(iii) using resource partners of the Administration and other entities, including universities, tribal governments, or tribal colleges; and

(iv) the prudent management of finances and staffing;

(E) the location where the applicant will provide training and services to Native Americans; and

(F) a multiyear plan, corresponding to the length of the grant, that describes--

(i) the number of Native Americans and Native American small business concerns to be served by the grant;

(ii) in the continental United States, the number of Native Americans to be served by the grant; and

(iii) the training and services to be provided to a representative number of Native Americans.

(3) REVIEW OF APPLICATIONS- The Administration shall--

(A) evaluate and rank applicants under paragraph (2) in accordance with predetermined selection criteria that is stated in terms of relative importance;

(B) include such criteria in each solicitation under this subsection and make such information available to the public; and

(C) approve or disapprove each completed application submitted under this subsection not more than 60 days after submission.

(4) ANNUAL REPORT- Each recipient of a Native American development grant under this subsection shall annually report to the Administration on the impact of the grant funding, including--

(A) the number of individuals assisted, categorized by ethnicity;

(B) the number of hours spent providing counseling and training for those individuals;

(C) the number of startup small business concerns created or maintained with assistance from a Native American business center;

(D) the gross receipts of assisted small business concerns;

(E) the number of jobs created or maintained at assisted small business concerns; and

(F) the number of Native American jobs created or maintained at assisted small business concerns.

(5) RECORD RETENTION-

(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.

(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (4) indefinitely.

(c) AMERICAN INDIAN TRIBAL ASSISTANCE CENTER GRANT PILOT PROGRAM-

(1) AUTHORIZATION-

(A) IN GENERAL- There is established a 4-year pilot program, under which the Administration shall award not less than 3 American Indian Tribal Assistance Center grants to establish joint projects to provide culturally tailored business development assistance to prospective and current owners of small business concerns located on or near tribal lands.

(B) ELIGIBLE ORGANIZATIONS-

(i) CLASS 1- Not fewer than 1 grant shall be awarded to a joint project performed by a Native American business center, a Native American business development center, and a small business development center.

(ii) CLASS 2- Not fewer than 2 grants shall be awarded to joint projects performed by a Native American business center and a Native American business development center.

(C) AMOUNTS- The Administration shall not award a grant under this subsection in an amount which exceeds $200,000 for each year of the project.

(D) GRANT DURATION- Each grant under this subsection shall be awarded for a 3-year period.

(2) CONDITIONS FOR PARTICIPATION- Each entity desiring a grant under this subsection shall submit to the Administration a joint application that contains--

(A) a certification that each participant of the joint application--

(i) is either a Native American business center, a Native American business development center, or a small business development center;

(ii) employs an executive director or program manager to manage the center; and

(iii) as a condition of receiving the American Indian Tribal Assistance Center grant, agrees--

(I) to an annual programmatic and financial examination; and

(II) to the maximum extent practicable, to remedy any problems identified pursuant to that examination;

(B) information demonstrating an historic commitment to providing assistance to Native Americans--

(i) residing on or near tribal lands; or

(ii) operating a small business concern on or near tribal lands;

(C) information demonstrating that each participant of the joint application has the ability and resources to meet the needs, including the cultural needs of the Native Americans to be served by the grant;

(D) information relating to proposed assistance that the grant will provide, including--

(i) the number of individuals to be assisted; and

(ii) the number of hours of counseling, training, and workshops to be provided;

(E) information demonstrating the effective experience of each participant of the joint application in--

(i) conducting financial, management, and marketing assistance programs, as described above, designed to impart or upgrade the business skills of current or prospective Native American business owners; and

(ii) the prudent management of finances and staffing; and

(F) a plan for the length of the grant, that describes--

(i) the number of Native Americans and Native American small business concerns to be served by the grant; and

(ii) the training and services to be provided.

(3) REVIEW OF APPLICATIONS- The Administration shall--

(A) evaluate and rank applicants under paragraph (2) in accordance with predetermined selection criteria that is stated in terms of relative importance;

(B) include such criteria in each solicitation under this subsection and make such information available to the public; and

(C) approve or disapprove each application submitted under this subsection not more than 60 days after submission.

(4) ANNUAL REPORT- Each recipient of an American Indian tribal assistance center grant under this subsection shall annually report to the Administration on the impact of the grant funding received during the reporting year, and the cumulative impact of the grant funding received since the initiation of the grant, including--

(A) the number of individuals assisted, categorized by ethnicity;

(B) the number of hours of counseling and training provided and workshops conducted;

(C) the number of startup business concerns created or maintained with assistance from a Native American business center;

(D) the gross receipts of assisted small business concerns;

(E) the number of jobs created or maintained at assisted small business concerns; and

(F) the number of Native American jobs created or maintained at assisted small business concerns.

(5) RECORD RETENTION-

(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.

(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (4) indefinitely.

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated--

(1) $1,000,000 for each of the fiscal years 2006 through 2009, to carry out the Native American Development Grant Pilot Program, authorized under subsection (b); and

(2) $1,000,000 for each of the fiscal years 2006 through 2009, to carry out the American Indian Tribal Assistance Center Grant Pilot Program, authorized under subsection (c).

END