S 2176
110th CONGRESS
1st Session
S. 2176
To promote the development of Native American small business
concerns, and for other purposes.
IN THE SENATE OF THE UNITED STATES
October 17, 2007
Mr. JOHNSON (for himself, Mr. KERRY, Mr. SMITH, Mr. AKAKA, Mrs. BOXER,
Mr. DORGAN, Mr. INOUYE, Ms. STABENOW, and Mr. TESTER) introduced the
following bill; which was read twice and referred to the Committee on
Small Business and Entrepreneurship
A BILL
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 2007'.
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;
`(v) Alaska Native corporations; and
`(vi) Native Hawaiian Organizations.
`(c) Native American Small Business Development Program-
`(A) IN GENERAL- The Administrator, 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
`(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-
`(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
an Alaska Native corporation or Native Hawaiian Organization may
only be made by grant.
`(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 Administrator 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 Administrator 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 Administrator.
`(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 Administrator
on proposed assistance and training activities.
`(i) IN GENERAL- The Administrator 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 Administrator.
`(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 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 submit to the Administrator
an itemized cost breakdown of actual expenditures incurred during
the preceding year.
`(B) ADMINISTRATION ACTION- Based on information received under
subparagraph (A), the Administrator 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 Administrator--
`(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 Administrator 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 Administrator 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.
`(i) IN GENERAL- The Administrator 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 Administrator
under that subparagraph.
`(7) ANNUAL REPORT- Each entity receiving financial assistance under
this subsection shall annually report to the Administrator 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.
`(A) APPLICATIONS- The Administrator shall maintain a copy of each
application submitted under this subsection for not less than 7
years.
`(B) ANNUAL REPORTS- The Administrator 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 2009 through 2013, 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-
(A) IN GENERAL- There is established a 4-year pilot program under
which the Administrator 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 Administrator 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 Administrator 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
(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 Administrator 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 Administrator
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.
(A) APPLICATIONS- The Administrator shall maintain a copy of each
application submitted under this subsection for not less than 7
years.
(B) ANNUAL REPORTS- The Administrator shall maintain copies of the
information collected under paragraph (4) indefinitely.
(c) American Indian Tribal Assistance Center Grant Pilot Program-
(A) IN GENERAL- There is established a 4-year pilot program, under
which the Administrator 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 Administrator 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 Administrator 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 Administrator 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 Administrator
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.
(A) APPLICATIONS- The Administrator shall maintain a copy of each
application submitted under this subsection for not less than 7
years.
(B) ANNUAL REPORTS- The Administrator 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 2009 through 2013, 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 2009 through 2013, to
carry out the American Indian Tribal Assistance Center Grant Pilot
Program, authorized under subsection (c).
END
