[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2631 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2631
To amend the Small Business Act to create a program to provide funding
for organizations that support startup businesses in formation and
early growth stages by providing entrepreneurs with resources and
services to produce viable businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 5, 2021
Mr. Booker (for himself and Ms. Hirono) introduced the following bill;
which was read twice and referred to the Committee on Small Business
and Entrepreneurship
_______________________________________________________________________
A BILL
To amend the Small Business Act to create a program to provide funding
for organizations that support startup businesses in formation and
early growth stages by providing entrepreneurs with resources and
services to produce viable businesses, 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 ``Startup Opportunity Accelerator Act
of 2021'' or the ``SOAR Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) startups have contributed greatly to the United States
economy, with research showing that between 1982 and 2011,
businesses 5 years or younger were responsible for nearly every
net new job created;
(2) startups face common challenges as they seek to
transform their ideas into successful, high-growth businesses;
(3) 4 metropolitan areas in 3 States--the San Francisco Bay
Area, New York City, Boston, and Los Angeles--receive nearly 75
percent of all venture capital investment, which is a critical
source of funding for high-growth startups;
(4) of startups that receive venture capital funding, 2
percent are African-American-owned, 6 percent are Latino-owned,
and only 13 percent are owned solely by women;
(5) incubators and accelerators are new models of growth
that drive innovation by connecting entrepreneurial individuals
and teams to create viable business ventures and social
initiatives;
(6) incubators and accelerators support promising startups
through partnerships, mentoring, and resources connecting them
with seasoned entrepreneurs;
(7) the goal of an incubator or an accelerator is to help
create and grow young businesses by providing them with
necessary financial, technical, and industry support and
financial and technical services; and
(8) startups offer unique opportunities for growth and
development for women, minority, and veterans to become
successful entrepreneurs and leaders in new and developed
fields.
SEC. 3. GROWTH ACCELERATOR FUND COMPETITION.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 49 (15 U.S.C. 631 note) as
section 50; and
(2) by inserting after section 48 the following:
``SEC. 49. GROWTH ACCELERATOR FUND COMPETITION.
``(a) Definitions.--In this section--
``(1) the term `disability' has the meaning given the term
in section 3 of the Americans with Disabilities Act of 1990 (42
U.S.C. 12102);
``(2) the term `eligible entity' means an organization--
``(A) that is located in the United States;
``(B) the primary purpose of which is to support
new small business concerns; and
``(C) that is often classified as a growth
accelerator;
``(3) the term `growth accelerator' means an organization
that--
``(A) supports new business concerns with a focus
on technology, research, and development;
``(B) frequently provides, but is not exclusively
designed to provide, seed investment in exchange for a
small amount of equity;
``(C) works with a new business concern for a
predetermined amount of time;
``(D) provides mentorship and instruction to scale
businesses; or
``(E) offers startup capital or the opportunity to
raise capital from outside investors;
``(4) the term `minority serving institution' means--
``(A) an institution described in any of paragraphs
(1) through (7) of section 371(a) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(a)); or
``(B) a junior or community college, as that term
is defined in section 312(f) of the Higher Education
Act of 1965 (20 U.S.C. 1058(f));
``(5) the term `new small business concern' means a small
business concern that has been in operation for not more than 5
years; and
``(6) the term `State' means any State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.
``(b) Funding.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator shall develop and
begin implementing a program to award cash grants of not less
than $1,000,000 to eligible entities to support new small
business concerns.
``(2) Use of funds.--A grant under this section--
``(A) may be used for construction costs, space
acquisition, and programmatic purposes; and
``(B) may not be used to provide capital to new
small business concerns directly or through the
subaward of funds.
``(3) Disbursal of funds.--In disbursing funds under this
section, the Administrator may use incremental or scheduled
payments.
``(c) Application.--
``(1) In general.--An eligible entity desiring a grant
under this section shall demonstrate that the eligible entity
will use the grant to provide assistance to not less than 10
new small business concerns per year.
``(2) Requirements.--In soliciting applications and
awarding grants to eligible entities under this section, the
Administrator shall employ a streamlined and inclusive approach
that--
``(A) widely publicizes funding opportunities to a
broad audience, including through the use of digital
resources such as the website of the Administration and
social media;
``(B) utilizes an easily accessible submission
process or platform;
``(C) shall make every effort to minimize--
``(i) the use of forms, detailed budgets,
supporting documentation, or written
submissions; and
``(ii) any other burdensome requirement;
``(D) focuses on solution-based approaches and
results-based outcomes;
``(E) encourages innovation; and
``(F) allows proposals or pitches to be presented
using various formats or media.
``(d) Criteria.--The Administrator shall establish criteria for a
grant under this section that shall give priority to eligible entities
that--
``(1) are providing or plan to provide to new small
business concerns--
``(A) office, manufacturing, or warehouse space,
including appropriate operations infrastructure;
``(B) access to capital either directly from the
eligible entity (using amounts other than the amounts
provided under the grant) or through guidance and
contacts for acquiring capital from outside investors;
``(C) access to professional services either
directly from the eligible entity (using amounts other
than the amounts provided under the grant) or through
guidance and contacts for acquiring professional
services, including accounting and legal services; or
``(D) a formal structured mentorship or
developmental program that assists new small business
concerns with building business skills and
competencies; or
``(2) if located within 20 miles of a minority serving
institution, demonstrates a referral or programmatic
relationship with that institution.
``(e) Considerations in Choosing Recipients.--In determining
whether to award a grant under this section to an eligible entity, the
Administrator shall take into account--
``(1) for eligible entities that have in operation a
program to support new small business concerns, the record of
the eligible entity in assisting new small business concerns,
including, for each of the 3 full years before the date on
which the eligible entity applies for a grant under this
section--
``(A) the retention rate of new small business
concerns in the program of the eligible entity;
``(B) the average period of participation by new
small business concerns in the program of the eligible
entity;
``(C) the total, average, and median capital raised
by new small business concerns participating in the
program of the eligible entity; and
``(D) the total, average, and median number of
employees of new small business concerns participating
in the program of the eligible entity;
``(2) for all eligible entities--
``(A) the number of new small business concerns
assisted or anticipated to be assisted by the eligible
entity;
``(B) the number of new small business concerns
applying or anticipated to apply for assistance from
the eligible entity;
``(C) whether the program of the eligible entity
provides or would provide assistance to individuals in
gender, racial, or ethnic groups underrepresented by
existing programs to assist new small business
concerns; and
``(D) other metrics determined appropriate by the
Administrator;
``(3) the need in the geographic area to be served by the
program to be carried out using the grant for additional
assistance for new small business concerns, if the area has
sufficient population density, as determined by the
Administrator;
``(4) the level of experience of the entrepreneurial
leadership of the eligible entity; and
``(5) the ability of the eligible entity to use and
leverage local strengths, including human resources,
infrastructure, and educational institutions.
``(f) Requirement To Award Grants to Certain Accelerators.--In
order to promote diversity in entrepreneurship, the Administrator shall
award not less than 50 percent of amounts appropriated for grants in a
given fiscal year to--
``(1) accelerators located in an area described in
subparagraph (A), (B), or (C) of section 31(b); and
``(2) accelerators for which not less than 50 percent of
the small business concerns served by the accelerator are small
business concerns--
``(A) owned and controlled by socially
disadvantaged individuals or economically disadvantaged
individuals, as defined in paragraphs (5) and (6)(A),
respectively, of section 8(a);
``(B) owned and controlled by women; or
``(C) that are not less than 51 percent owned by
one or more--
``(i) Native Americans;
``(ii) individuals participating in the
Transition Assistance Program of the Department
of Defense;
``(iii) individuals who--
``(I) served on active duty in any
branch of the Armed Forces, including
the National Guard and Reserves; and
``(II) were discharged or released
from such service under conditions
other than dishonorable;
``(iv) formerly incarcerated individuals;
or
``(v) individuals with a disability.
``(g) Matching Nonpublic Funding.--An eligible entity receiving a
grant under this section may obtain funds from a private individual or
entity (including a for-profit or nonprofit entity) that are--
``(1) for the same purposes as a grant may be made under
this section; and
``(2) used to carry out the program of the eligible entity
carried out using the grant under this section.
``(h) Consequences of Failure To Abide by Terms or Conditions of
Grant or Requirements of This Section.--The Administrator shall notify
each eligible entity receiving a grant under this section that failure
to abide by the terms and conditions of the grant or the requirements
of this section may, in the discretion of the Administrator and in
addition to any other civil or criminal consequences, result in the
Administrator withholding payments or ordering the eligible entity to
return the grant funds.
``(i) Annual Progress Reporting by Recipients of Grant.--Each
eligible entity receiving a grant under this section shall submit to
the Administrator an annual report on the progress of the program
carried out using the amounts received under the grant, including--
``(1) the number of new small business concerns
participating in the program during each of the 3 years
preceding the report;
``(2) the number of new small business concerns applying to
participate in the program during each of the 3 years preceding
the report;
``(3) the retention rate of new small business concerns in
the program;
``(4) the average period of participation in the program by
new small business concerns;
``(5) the total, average, and median capital raised by new
small business concerns participating in the program;
``(6) the total, average, and median number of employees of
new small business concerns participating in the program;
``(7) the number of new small business concerns--
``(A) owned and controlled by socially
disadvantaged individuals or economically disadvantaged
individuals, as defined in paragraphs (5) and (6)(A),
respectively, of section 8(a);
``(B) owned and controlled by women; or
``(C) that are not less than 51 percent owned by
one or more--
``(i) Native Americans;
``(ii) individuals participating in the
Transition Assistance Program of the Department
of Defense;
``(iii) individuals who--
``(I) served on active duty in any
branch of the Armed Forces, including
the National Guard and Reserves; and
``(II) were discharged or released
from such service under conditions
other than dishonorable;
``(iv) formerly incarcerated individuals;
or
``(v) individuals with a disability; and
``(8) other metrics determined appropriate by the
Administrator.
``(j) Reports to Congress.--The Administrator shall submit to
Congress an annual report on the program under this section, which
shall include an assessment of the effectiveness of the program,
including an assessment based on the metrics listed in subsection (i).
``(k) Coordination With Other Small Business Administration
Programs.--The Administrator shall take appropriate action to encourage
eligible entities receiving a grant under this section to use and
incorporate other programs of the Administration, such as small
business development centers, small business investment companies,
loans under section 7(a), assistance under title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.), and resource
partners of the Administration, including women's business centers and
veteran's business outreach centers.
``(l) Coordination With the Department of Veterans Affairs.--In
consultation with the Secretary of Veteran Affairs, the Administrator
shall make available outreach materials regarding the opportunities for
veterans within the program under this section for distribution and
display at local facilities of the Department of Veterans Affairs.
``(m) Listing on Website.--The Administrator shall include a list
of eligible entities receiving a grant under this section on the
website of the Administration.
``(n) Authorization of Appropriations.--There is authorized to be
appropriated to the Administration $800,000,000, to remain available
until expended, to carry out this section.''.
<all>