[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6326 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 6326
To establish a pilot program awarding competitive grants to
organizations administering entrepreneurial development programming to
formerly incarcerated individuals, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 20, 2021
Mr. Carter of Louisiana introduced the following bill; which was
referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To establish a pilot program awarding competitive grants to
organizations administering entrepreneurial development programming to
formerly incarcerated individuals, 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 ``Necessary Entrepreneurship Workshops
via the SBA to Transform and Assist Re-entry Training Act of 2021'' or
the ``NEW START Act of 2021''.
SEC. 2. FINDINGS.
Congress finds that--
(1) according to the Department of Justice, every year,
over 600,000 individuals are released from prison and return
home to their communities, and almost 77 percent of those
individuals will reoffend within 5 years;
(2) according to the Center for American Progress, an
estimated 60 percent of formerly incarcerated individuals will
remain unemployed for a period of 1 year post-incarceration,
increasing the risk for recidivism;
(3) according to the Center for Economic and Policy
Research, the economy of the United States loses an estimated
$78,000,000,000 to $87,000,000,000 annually due to lost output
from individuals with criminal records unable to find stable
employment;
(4) entrepreneurial development programs for incarcerated
and formerly incarcerated individuals report dramatically lower
rates of recidivism; and
(5) self-employment can provide economic stability for
those who are otherwise locked out of the labor market.
SEC. 3. PILOT PROGRAM.
(a) Definitions.--In this Act--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``appropriate committees of Congress'' means--
(A) the Committee on Small Business and
Entrepreneurship of the Senate; and
(B) the Committee on Small Business of the House of
Representatives;
(3) the term ``covered individual'' means an individual
who--
(A) completed a term of imprisonment in Federal,
State, or local jail or prison; and
(B) meets the offense eligibility requirements set
forth in any applicable policy notice or other guidance
issued by the Small Business Administration for the
program established under section 7(m) of the Small
Business Act (15 U.S.C. 636(m));
(4) the terms ``intermediary'' and ``microloan'' have the
meanings given those terms in section 7(m)(11) of the Small
Business Act (15 U.S.C. 636(m)(11));
(5) the term ``microloan intermediary'' means an
intermediary that is eligible to participate in the program
established under section 7(m) of the Small Business Act (15
U.S.C. 636(m)); and
(6) the term ``pilot program'' means the pilot program
established under subsection (b).
(b) Establishment.--Not later than 6 months after the date of
enactment of this Act, the Administrator shall establish a pilot
program to award grants to organizations over a 5-year period to create
or support existing entrepreneurship development programs to provide
assistance to covered individuals.
(c) Grant Requirements.--The Administrator shall--
(1) award a grant under the pilot program to not fewer than
6 organizations, or partnerships of organizations, which shall
each receive grants annually over the 5-year period in which
the pilot program is in existence; and
(2) allocate grants under the pilot program to ensure that
the recipients are geographically varied throughout the United
States.
(d) Partnerships.--An applicant for a grant under the pilot program
may form partnerships with other organizations for the purposes of the
application and for conducting entrepreneurial development programming.
(e) Application.--
(1) In general.--An organization or partnership of
organizations desiring a grant under the pilot program shall
submit an application to the Administrator in such form, in
such manner, and containing such information as the
Administrator may reasonably require.
(2) Contents.--An application submitted under paragraph (1)
shall--
(A) demonstrate that the applicant has a
partnership with, or is, a microloan intermediary that
shall provide microloans to qualified covered
individuals, or, to the extent that the applicant is a
national organization in multiple different markets,
that a separate microloan intermediary may be used in
each such market;
(B) demonstrate strong community ties, including
those with the covered individual community, local
businesses, and political leaders;
(C) demonstrate an ability to provide a full range
of entrepreneurial development programming on an
ongoing basis;
(D) include a plan for reaching covered
individuals, including by identifying particular target
populations within the community;
(E) clearly define entrepreneurial development
capabilities, including coordination with existing
local resource partners of the Administration for
additional training as necessary;
(F) present an entrepreneurship development
curriculum, which may be a nationally recognized model
or based upon such a model;
(G) include a list of each partner organization;
and
(H) include a comprehensive plan for the use of
grant funds, including estimates for administrative and
outreach costs of running and evaluating the
entrepreneurship development program.
(f) Priority.--In determining whether to award a grant under the
pilot program, the Administrator may give priority to applicants based
on--
(1) whether the application includes a commitment from an
existing or new non-Federal funding source to meet the matching
requirement under subsection (g);
(2) whether the application takes into account local
economies and markets as a part of the educational component of
the entrepreneurship development program; and
(3) the ability or plan of the applicant to provide
entrepreneurial development services concurrent with employment
or job training services.
(g) Matching Requirement.--
(1) In general.--As a condition of a grant provided under
the pilot program, the Administrator shall require the
recipient of the grant to contribute an amount equal to 25
percent of the amount of the grant, obtained solely from
existing or new non-Federal sources.
(2) Form.--In addition to cash or other direct funding, the
contribution required under paragraph (1) may include indirect
costs or in-kind contributions paid for under non-Federal
programs.
(h) Reports.--
(1) Annual reports.--
(A) Individual reports to administrator.--A
recipient of a grant under the pilot program shall
submit to the Administrator an annual report on the use
of grant funds under the pilot program, which shall
contain, with respect to the entrepreneurship
development programs created or supported under the
pilot program--
(i) a list of partner organizations;
(ii) the characteristics of covered
individuals assisted under the entrepreneurship
development programs, including race and
ethnicity, gender, age, marital status,
parental status, employment status, income,
banking and credit history, and prior business
experience;
(iii) the participation and attendance
rates for all components of the
entrepreneurship development programs;
(iv) the program retention rate;
(v) the percentage of participants who
remain non-justice involved during the calendar
year of the program;
(vi) the level of the covered individuals'
understanding of business concepts and
principles;
(vii) the level of the covered individuals'
greater confidence in leadership strengths,
including the results of an industry-recognized
behavioral assessment;
(viii) the covered individuals' progress
made toward establishing a business;
(ix) the experiences and perceptions of the
covered individuals;
(x) the number and dollar amount of loans
made to qualified covered individuals; and
(xi) such additional information as the
Administrator may require.
(B) Consolidated report to congress.--Not later
than 60 days after the date on which the last report
with respect to a year has been submitted to the
Administrator under subparagraph (A), the Administrator
shall submit to the appropriate committees of Congress
a report that summarizes all of the reports submitted
to the Administrator under that subparagraph for that
year.
(2) GAO report.--Not later than 1 year after the date on
which the pilot program terminates, the Comptroller General of
the United States shall submit to the appropriate committees of
Congress a report that evaluates--
(A) the services that grant recipients provided to
covered individuals assisted under entrepreneurship
development programs;
(B) oversight of the pilot program by the
Administrator, including policies and procedures for
monitoring the compliance by grant recipients with
pilot program requirements and an assessment of the
effectiveness of the pilot program; and
(C) the overall performance of the pilot program
and the impacts of the pilot program on grant
recipients.
(i) Rule of Construction.--Nothing in this Act may be construed to
affect the program established under section 7(m) of the Small Business
Act (15 U.S.C. 636(m)), including--
(1) the requirements of that program;
(2) the manner in which that program is carried out; or
(3) the use or availability of any amounts that have been
made available to carry out that program.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator such sums as are necessary to carry
out the pilot program.
(k) Termination.--The pilot program shall terminate on the date
that is 5 years after the date of enactment of this Act.
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