[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1499 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1499

  To establish a program awarding competitive grants to organizations 
  administering entrepreneurial development programming to currently 
incarcerated and formerly incarcerated individuals, and other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2025

Mr. Markey (for himself and Mr. Booker) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
  To establish a program awarding competitive grants to organizations 
  administering entrepreneurial development programming to currently 
incarcerated and formerly incarcerated individuals, and 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 ``New Start Act of 2025''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) according to the Department of Justice, every year, 
        around 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 Brookings Institution, an estimated 
        48.5 percent of formerly incarcerated individuals will remain 
        unemployed or earn a negligible income for a period of 1 year 
        post-incarceration, increasing the risk for recidivism;
            (3) according to the Florida State University Institute for 
        Justice Research and Development, formerly incarcerated 
        individuals see a reduction in earnings of 25 percent since 
        criminal records make it difficult to find stable employment;
            (4) self-employment can provide economic stability for 
        those who are otherwise locked out of the labor market; and
            (5) according to a paper entitled ``Entrepreneurship as a 
        Response to Labor Market Discrimination for Formerly 
        Incarcerated People''--
                    (A) the average individual without a criminal 
                record has a 7.09 percent likelihood of becoming an 
                entrepreneur, but justice-impacted individuals were 
                found to be more than 50 percent likely to choose 
                entrepreneurship with a 12.49 percent likelihood of 
                becoming an entrepreneur;
                    (B) entrepreneurship reduces the likelihood of 
                recidivism by 5.3 percent, which was a 32.5 percent 
                decrease from average recidivism rates for regular 
                employees who have been previously incarcerated; and
                    (C) formerly incarcerated individuals who choose 
                entrepreneurship make $2,700 more annually than 
                formerly incarcerated employees and that the income gap 
                between formerly incarcerated entrepreneurs and 
                entrepreneurs with no criminal record was 38 percent 
                lower than the income gap between formerly incarcerated 
                employees and employees with no criminal record.

SEC. 3. ENTREPRENEURSHIP COUNSELING AND TRAINING FOR JUSTICE-IMPACTED 
              INDIVIDUALS.

    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 (15 U.S.C. 657u) the 
        following:

``SEC. 49. NEW START PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Appropriate committees of congress.--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.
            ``(2) Community advantage small business lending company.--
        The term `Community Advantage Small Business Lending Company' 
        has the meaning given the term in section 120.10 of title 13, 
        Code of Federal Regulations, or any successor regulation.
            ``(3) Currently incarcerated individual.--The term 
        `currently incarcerated individual' means an individual who--
                    ``(A) is incarcerated in a Federal prison 
                designated as a minimum, low, or medium security prison 
                by the Director of the Bureau of Prisons or is under 
                the jurisdiction of the Bureau of Prisons and is housed 
                in a Residential Reentry Center operated under a 
                contract with the Bureau of Prisons; and
                    ``(B) meets the offense eligibility requirements 
                set forth in any applicable policy notice or other 
                guidance issued by the Administration for the program 
                established under section 7(m).
            ``(4) Entrepreneurial development program.--The term 
        `entrepreneurial development program' includes programming that 
        provides--
                    ``(A) assistance and in-depth training on how to 
                start or expand a small business concern, including--
                            ``(i) a self-study course manual focused on 
                        the basic skills of entrepreneurship, financial 
                        literacy, the language of business, and the 
                        considerations and life skills relevant to 
                        self-employment and ownership of a small 
                        business concern;
                            ``(ii) in-depth classroom instruction 
                        introducing the foundations of self-employment 
                        and ownership of small business concerns; or
                            ``(iii) one-on-one training, including 
                        individual support in the development of a 
                        business plan, entrepreneurial skills, and 
                        strategies for starting a small business 
                        concern;
                    ``(B) the tools, skills, and knowledge necessary to 
                identify a business opportunity, including how to--
                            ``(i) draft a resume, business plan, or 
                        succession plan;
                            ``(ii) identify sources of capital and 
                        contracting opportunities; or
                            ``(iii) connect with local resources for 
                        small business concerns;
                    ``(C) a mentorship program for over a predetermined 
                or open-ended period; or
                    ``(D) seed investment in exchange for a small 
                amount of equity, as well as startup capital, or the 
                opportunity to raise capital from outside investors.
            ``(5) Formerly incarcerated individual.--The term `formerly 
        incarcerated 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 Administration for the program 
                established under section 7(m).
            ``(6) Microloan intermediary.--The term `microloan 
        intermediary' means an intermediary (as defined in section 
        7(m)(11)) that is eligible to participate in the program 
        established under section 7(m).
            ``(7) Program.--The term `Program' means the New Start 
        Program established under subsection (b).
            ``(8) SCORE.--The term `SCORE' means the Service Corps of 
        Retired Executives described in section 8(b)(1)(B).
            ``(9) Women's business center.--The term `women's business 
        center' means a women's business center described in section 
        29.
    ``(b) Establishment.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the New Start Act of 2025, the Administrator 
        shall establish the New Start Program to award grants to 
        organizations over a 5-year period to create or support 
        existing entrepreneurial development programs for formerly 
        incarcerated individuals or currently incarcerated individuals.
            ``(2) Requirements.--In carrying out the Program, the 
        Administrator shall--
                    ``(A) coordinate with the Director of the Bureau of 
                Prisons to allow organizations, including small 
                business development centers, women's business centers, 
                and SCORE chapters, that receive a grant under this 
                section to provide entrepreneurial development 
                assistance to currently incarcerated individuals;
                    ``(B) develop a plan, which shall be updated 
                annually and made in consultation with associations 
                that represent small business development centers, 
                women's business centers, and SCORE chapters, to match 
                organizations with formerly incarcerated individuals 
                and currently incarcerated individuals; and
                    ``(C) to the extent possible, ensure an equitable 
                share of grants between organizations that provide 
                entrepreneurial development programs targeted to 
                formerly incarcerated individuals and organizations 
                that provide entrepreneurial development programs to 
                currently incarcerated individuals.
    ``(c) Grant Requirements.--
            ``(1) In general.--The Administrator shall--
                    ``(A) award grants under the Program to 
                organizations, or partnerships of organizations, 
                including small business development centers, women's 
                business centers, and SCORE chapters, which shall each 
                receive a grant in an amount greater than $100,000 and 
                less than $500,000 annually over the 5-year period in 
                which the Program is in existence; and
                    ``(B) allocate grants under the Program to ensure 
                that the recipients are geographically varied 
                throughout the United States.
            ``(2) Cap on women's business center grants.--The amount of 
        an award granted to a women's business center under the Program 
        shall not count toward the maximum grant award amount allowable 
        under section 29.
    ``(d) Partnerships.--An applicant for a grant under the Program may 
form partnerships with other organizations for the purposes of the 
application submitted under subsection (e) and for conducting 
entrepreneurial development programs.
    ``(e) Application.--
            ``(1) In general.--An organization or partnership of 
        organizations desiring a grant under the 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) for the purposes of entrepreneurial 
                development programming targeted at formerly 
                incarcerated individuals, demonstrate that the 
                applicant is a microloan intermediary or a Community 
                Advantage Small Business Lending Company, or has a 
                partnership with such a microloan intermediary, 
                Community Advantage Small Business Lending Company, or 
                other lender that may provide capital to qualified 
                formerly incarcerated individuals;
                    ``(B) demonstrate strong community ties, including 
                those with the justice-impacted 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 formerly 
                incarcerated individuals or currently incarcerated 
                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 entrepreneurial 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 
                entrepreneurial development program.
    ``(f) Priority.--In determining whether to award a grant under the 
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;
            ``(2) whether the application takes into account local 
        economies and markets as a part of the educational component of 
        the entrepreneurial development program;
            ``(3) the ability or plan of the applicant to provide 
        entrepreneurial development services concurrent with employment 
        or job training services;
            ``(4) whether the applicant has a history of effectively 
        providing entrepreneurial development training or access to 
        capital to formerly incarcerated individuals or currently 
        incarcerated individuals; and
            ``(5) whether the applicant will be providing 
        entrepreneurial development training to currently incarcerated 
        individuals who will be released from Federal custody not later 
        than 18 months after the date on which those currently 
        incarcerated individuals begin to receive those services.
    ``(g) Responsibilities.--A recipient of a grant under the Program 
shall, to the maximum extent possible, connect formerly incarcerated 
individuals to a range of Federal resources, including--
            ``(1) the program established under section 7(m);
            ``(2) Community Advantage Small Business Lending Companies;
            ``(3) small business development centers;
            ``(4) women's business centers;
            ``(5) SCORE chapters;
            ``(6) Veteran Business Outreach Centers described in 
        section 32 of the Small Business Act (15 U.S.C. 657b); and
            ``(7) business centers established by the Minority Business 
        Development Agency of the Department of Commerce.
    ``(h) Reports.--
            ``(1) In general.--Not later than 1 year after the date on 
        which the Administrator establishes the Program, and every year 
        thereafter until the Program terminates, the Administrator 
        shall submit to the appropriate committees of Congress a report 
        on the activities of the Program, including--
                    ``(A) a list of each grantee organization and each 
                partner organization;
                    ``(B) the characteristics of formerly incarcerated 
                individuals and currently incarcerated individuals 
                assisted under the entrepreneurial development 
                programs, including race and ethnicity, gender, age, 
                marital status, parental status, employment status, 
                income, and prior business experience;
                    ``(C) the participation and attendance rates for 
                all components of the entrepreneurial development 
                programs;
                    ``(D) the entrepreneurial development program 
                retention rate;
                    ``(E) to the greatest extent practicable, the most 
                common reasons why participants do not complete an 
                entrepreneurial development program;
                    ``(F) the percentage of formerly incarcerated 
                individuals who remain non-justice involved during the 
                calendar year of an entrepreneurial development 
                program;
                    ``(G) the experiences and perceptions of 
                entrepreneurial development program participants;
                    ``(H) the number and dollar amount of loans made to 
                formerly incarcerated individuals;
                    ``(I) the number and dollar amount of loans made or 
                guaranteed by the Administration to formerly 
                incarcerated individuals; and
                    ``(J) such additional information as the 
                Administrator may require.
            ``(2) GAO report.--Not later than 1 year after the date on 
        which the 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 formerly incarcerated individuals and currently 
                incarcerated individuals assisted under entrepreneurial 
                development programs;
                    ``(B) oversight of the Program by the 
                Administrator, including policies and procedures for 
                monitoring the compliance by grant recipients with 
                Program requirements and an assessment of the 
                effectiveness of the Program; and
                    ``(C) the overall performance of the Program and 
                the impacts of the Program on grant recipients.
    ``(i) Rule of Construction.--Nothing in this section may be 
construed to affect the program established under section 7(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 Program.''.
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