Text: H.R.6233 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (09/28/2010)


111th CONGRESS
2d Session
H. R. 6233

To establish a Native American entrepreneurial development program in the Small Business Administration.


IN THE HOUSE OF REPRESENTATIVES
September 28, 2010

Ms. Herseth Sandlin (for herself, Mr. Kildee, Mr. Cole, and Mr. Young of Alaska) introduced the following bill; which was referred to the Committee on Small Business


A BILL

To establish a Native American entrepreneurial development program in the Small Business Administration.

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 Assistance and Entrepreneurial Growth Act of 2010”.

SEC. 2. Native American small business development program.

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

(1) in section 4(b)(1) (15 U.S.C. 633(b)(1))—

(A) in the fifth sentence, by striking “five Associate Administrators” and inserting “6 Associate Administrators”; and

(B) by inserting after the fifth sentence the following: “1 Associate Administrator shall be the Associate Administrator of the Office of Native American Affairs established by section 44.”;

(2) by redesignating section 44 as section 45; and

(3) by inserting after section 43 (15 U.S.C. 657o) the following:

“SEC. 44. Native American small business development program.

“(a) Definitions.—In this section:

“(1) ASSOCIATE ADMINISTRATOR.—The term ‘Associate Administrator’ means the Associate Administrator of the Office of Native American Affairs established under subsection (b).

“(2) CENTER; NATIVE AMERICAN BUSINESS CENTER.—The terms ‘center’ and ‘Native American business center’ mean a center established under subsection (c).

“(3) ELIGIBLE APPLICANT.—The term ‘eligible applicant’ means—

“(A) a tribal college;

“(B) a private, nonprofit organization—

“(i) that provides business and financial or procurement technical assistance to 1 or more Native American communities; and

“(ii) that is dedicated to assisting one or more Native American communities; or

“(C) a small business development center, women’s business center, or other private organization participating in a joint project.

“(4) JOINT PROJECT.—The term ‘joint project’ means a project that—

“(A) combines the resources and expertise of 2 or more distinct entities at a physical location dedicated to assisting the Native American community; and

“(B) submits to the Administration a joint application that contains—

“(i) a certification that each participant of the project—

“(I) is an eligible applicant; and

“(II) employs an executive director or program manager to manage the center;

“(ii) information demonstrating a record of commitment to providing assistance to Native Americans; and

“(iii) information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the project.

“(5) NATIVE AMERICAN SMALL BUSINESS CONCERN.—The term ‘Native American small business concern’ means a small business concern that is at least 51 percent owned and controlled by—

“(A) an Indian tribe or a Native Hawaiian Organization, as the terms are described in paragraphs (13) and (15) of section 8(a), respectively; or

“(B) 1 or more individual members of an Indian tribe or Native Hawaiian Organization.

“(6) NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.—The term ‘Native American small business development program’ means the program established under subsection (c).

“(7) SMALL BUSINESS CONCERN.—The term ‘small business concern’ has the same meaning as in section 3.

“(8) SMALL BUSINESS DEVELOPMENT CENTER.—The term ‘small business development center’ means a small business development center described in section 21.

“(9) TRIBAL COLLEGE.—The term ‘tribal college’ has the meaning given the term ‘tribally controlled college or university’ in section 2(a) of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801(a)).

“(10) TRIBAL LAND.—The term ‘tribal land’ has the meaning given the term ‘reservation’ in section 3 of the Indian Financing Act (25 U.S.C. 1452).

“(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 Associate Administrator, shall implement the programs of the Administration for the development of business enterprises by Native Americans.

“(2) PURPOSE.—The purpose of the Office of Native American Affairs is to help Native American small business concerns—

“(A) to start, operate, and increase the business of small business concerns;

“(B) to develop management and technical skills;

“(C) to seek Federal procurement opportunities;

“(D) to increase employment opportunities for Native Americans through the establishment and expansion of small business concerns; and

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

“(3) ASSOCIATE ADMINISTRATOR.—

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

“(B) QUALIFICATIONS.—The Associate Administrator appointed under subparagraph (A) shall have—

“(i) knowledge of Native American culture; and

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

“(C) EMPLOYMENT STATUS.—The Administrator shall establish the position of Associate Administrator, who shall—

“(i) be an appointee in the Senior Executive Service (as defined in section 3132(a) of title 5, United States Code); and

“(ii) shall report to and be responsible directly to the Administrator.

“(D) RESPONSIBILITIES AND DUTIES.—The Associate Administrator shall—

“(i) administer and manage the Native American small business development program;

“(ii) formulate, execute, and promote the policies and programs of the Administration that provide assistance to small business concerns owned and controlled by Native Americans;

“(iii) act as an ombudsman for full consideration of Native Americans in all programs of the Administration;

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

“(v) consult with Native American business centers in carrying out the Native American small business development program;

“(vi) recommend appropriate funding levels;

“(vii) review the annual budgets submitted by each applicant for the Native American small business development program;

“(viii) select applicants to participate in the Native American small business development program;

“(ix) implement this section; and

“(x) maintain a clearinghouse for the dissemination and exchange of information between all Administration-sponsored business centers.

“(E) CONSULTATION REQUIREMENTS.—In carrying out the responsibilities and duties described in this paragraph, the Associate Administrator shall confer with and seek the advice of—

“(i) officials of the Administration working in areas served by Native American business centers; and

“(ii) eligible applicants.

“(c) Native American small business development program.—

“(1) FINANCIAL ASSISTANCE.—

“(A) IN GENERAL.—The Administration, acting through the Associate Administrator, shall provide financial assistance to eligible applicants to establish 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 establish a Native American business center to overcome obstacles impeding the establishment, development, and expansion of small business concerns, in accordance with this section.

“(2) 5-YEAR PROJECTS.—

“(A) IN GENERAL.—Each Native American business center that receives assistance under paragraph (1)(A) shall conduct a 5-year project that offers 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) using 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 Native American small business concerns.

“(3) FORM OF FEDERAL FINANCIAL ASSISTANCE.—

“(A) DOCUMENTATION.—The financial assistance to Native American business centers authorized under this subsection may be made by grant, contract, or cooperative agreement.

“(B) PAYMENTS.—

“(i) TIMING.—Payments made under this subsection may be disbursed 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 business center after notice of the award has been issued.

“(C) NON-FEDERAL CONTRIBUTIONS.—

“(i) IN GENERAL.—

“(I) INITIAL FINANCIAL ASSISTANCE.—Except as provided in subclause (II), an eligible applicant that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the Native American business center established by the eligible applicant in an amount equal to—

“(aa) in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and

“(bb) in the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection.

“(II) RENEWALS.—An eligible applicant that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of a Native American business center established by the eligible applicant in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection.

“(III) EXCEPTIONS.—The requirements of this section may be waived at the discretion of the Administrator, based on an evaluation of the ability of the eligible applicant to provide non-Federal contributions.

“(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 underserved small business concerns located on or near tribal land, to the extent that the contract or cooperative agreement is consistent with and does not duplicate 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 Administrator shall evaluate applicants for financial assistance under this subsection in accordance with selection criteria that are—

“(I) established before the date on which eligible applicants are required to submit the applications;

“(II) stated in terms of relative importance; and

“(III) publicly available and stated in each solicitation for applications for financial assistance under this subsection made by the Administrator.

“(ii) CONSIDERATIONS.—The criteria required by this subparagraph 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;

“(V) the proposed location for the Native American business center, 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; and

“(VI) demonstrated experience in providing technical assistance, including financial, marketing, and management assistance.

“(6) CONDITIONS FOR PARTICIPATION.—Each eligible applicant desiring a grant under this subsection shall submit an application to the Administrator that contains—

“(A) a certification that the applicant—

“(i) is an eligible applicant;

“(ii) employs a full-time executive director, project director, or program manager to manage the Native American business center; and

“(iii) agrees—

“(I) to a site visit by the Administrator 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 effectiveness and experience of the applicant in—

“(i) conducting financial, management, and marketing assistance programs designed to educate or improve 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 institutions of higher education, Indian tribes, or tribal colleges; and

“(iv) the prudent management of finances and staffing;

“(E) the location at which the applicant will provide training and services to Native Americans;

“(F) a 5-year plan that describes—

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

“(ii) if the Native American business center is located 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; and

“(G) if the applicant is a joint project—

“(i) a certification that each participant in the joint project is an eligible applicant;

“(ii) information demonstrating a record of commitment to providing assistance to Native Americans; and

“(iii) information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the grant.

“(7) REVIEW OF APPLICATIONS.—The Administrator shall approve or disapprove each completed application submitted under this subsection not later than 90 days after the date on which the eligible applicant submits the application.

“(8) PROGRAM EXAMINATION.—

“(A) IN GENERAL.—Each Native American business center established under this subsection shall annually provide to the Administrator an itemized cost breakdown of actual expenditures made 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 the renewal, if the Administrator determines that—

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

“(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);

“(III) the center has failed to comply with a requirement for participation in the Native American small business development program, as determined by the Administrator, including—

“(aa) failure to acquire or properly document a non-Federal contribution;

“(bb) failure to establish an appropriate partnership or program for marketing and outreach to reach new Native American small business concerns;

“(cc) failure to achieve results described in a financial assistance agreement; and

“(dd) failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center;

“(IV) the center has failed to carry out the 5-year plan under in paragraph (6)(F); or

“(V) the center cannot make the certification described in paragraph (6)(A).

“(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, the Administrator may not suspend, terminate, or fail to renew or extend any such contract or cooperative agreement unless the Administrator—

“(I) provides the center with written notification that describes the reasons for the action of the Administrator; and

“(II) affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.

“(E) ANNUAL MANAGEMENT REPORT.—

“(i) IN GENERAL.—The Administrator shall prepare and submit to the Committee on Small Business and Entrepreneurship and the Committee on Indian Affairs of the Senate and the Committee on Small Business and the Committee on Natural Resources 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 established with the assistance of the Native American business center;

“(III) the number of existing businesses in the area served by the Native American business center seeking to expand employment;

“(IV) the number of jobs established or maintained, on an annual basis, by Native American small business concerns assisted by the center since receiving funding under this section;

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

“(VI) any additional information on the counseling and training program that the Administrator determines to be necessary; and

“(VII) the most recent examination, as required under subparagraph (B), and the determination made by the Administration under that subparagraph.

“(9) ANNUAL REPORTS.—Each Native American business center receiving financial assistance under this subsection shall submit to the Administrator an annual report on the services provided with the financial assistance, including—

“(A) the number of individuals assisted, by tribal affiliation;

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

“(C) the number of startup small business concerns established or maintained with the assistance of the Native American business center;

“(D) the gross receipts of small business concerns assisted by the Native American business center;

“(E) the number of jobs established or maintained by small business concerns assisted by the Native American business center; and

“(F) the number of jobs for Native Americans established or maintained at small business concerns assisted by the Native American business center.

“(10) RECORD RETENTION.—

“(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 certification submitted under paragraph (6)(A) indefinitely.

“(d) Authorization of appropriations.—

“(1) IN GENERAL.—There is authorized to be appropriated to carry out the Native American small business development program $10,000,000 for each of fiscal years 2011 through 2013.

“(2) ADMINISTRATION.—Not more than 10 percent of funds appropriated for a fiscal year may be used for the costs of administering the programs under this section.”.