,,ii #aafth ,,congress #ast ,session ,s4 #badi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ag1 #bjai,mr4 ,booker introduced the following bill2 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 businesses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,startup ,opportunity ,accelerator ,act of #bjai or the ,,soar ,act4 #b4 ,findings ,congress finds that-- 7#a7 startups have contributed greatly to the ,united ,states economy1 with research showing that between #aihb and #bjaa1 businesses #e years or younger were responsible for nearly every net new job created2 7#b7 startups face common challenges as they seek to transform their ideas into successful1 high-growth businesses2 7#c7 #d metropolitan areas in #c ,states--the ,san ,francisco ,bay ,area1 ,new ,york ,city1 ,boston1 and ,los ,angeles--receive nearly #ge percent of all venture capital investment1 which is a critical source of funding for high-growth startups2 7#d7 of startups that receive venture capital funding1 #b percent are ,african-,american-owned1 #f percent are ,latino-owned1 and only #ac percent are owned solely by women2 7#e7 incubators and accelerators are new models of growth that drive innovation by connecting entrepreneurial individuals and teams to create viable business ventures and social initiatives2 7#f7 incubators and accelerators support promising startups through partnerships1 mentoring1 and resources connecting them with seasoned entrepreneurs2 7#g7 the goal of an incubator or an accelerator is to help create and grow young businesses by providing them with necessary financial1 technical1 and industry support and financial and technical services2 and 7#h7 startups offer unique opportunities for growth and development for women1 minority1 and veterans to become successful entrepreneurs and leaders in new and developed fields4 #c4 ,funding for organizations that support startup businesses 7a7 ,in general ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7#a7 by redesignating section #di 7#ae ,u4,s4,c4 #fca note7 as section #ej2 and 7#b7 by inserting after section #dh the following3 #di4 ,funding for organizations that support startup businesses 7a7 ,definitions ,in this section-- 7#a7 the term accelerator means an organization that-- 7,a7 frequently provides1 but is not exclusively designed to provide1 seed investment in exchange for a small amount of equity2 7,b7 works with a startup for a predetermined amount of time2 7,c7 provides mentorship and instruction to scale businesses2 or 7,d7 offers startup capital or the opportunity to raise capital from outside investors2 7#b7 the term disability has the meaning given the term in section #c of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abajb72 7#c7 the term eligible entity means an organization-- 7,a7 that is located in the ,united ,states2 7,b7 the primary purpose of which is to support new small business concerns2 and 7,c7 that is often classified as an accelerator2 7#d7 the term new small business concern means a small business concern that has been in operation for not more than #e years2 7#e7 the term small business concern owned and controlled by socially and economically disadvantaged individuals has the meaning given the term in section #h7;d77#c77;,c72 and 7#f7 the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and any territory or possession of the ,united ,states4 7b7 ,funding 7#a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,administrator shall develop and begin implementing a program to award cash grants of not more than #ajj1jjj to eligible entities to support new small business concerns4 7#b7 ,use of funds ,a grant under this section-- 7,a7 may be used for construction costs1 space acquisition1 and programmatic purposes2 and 7,b7 may not be used to provide capital or professional services to new small business concerns directly or through the subaward of funds4 7#c7 ,disbursal of funds ,in disbursing funds under this section1 the ,administrator may use incremental or scheduled payments4 7c7 ,application 7#a7 ,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 #aj new small business concerns per year4 7#b7 ,requirements ,in soliciting applications and awarding grants to eligible entities under this section1 the ,administrator shall employ a streamlined and inclusive approach that-- 7,a7 widely publicizes funding opportunities to a broad audience1 including through the use of digital resources such as the website of the ,administration and social media2 7,b7 utilizes an easily accessible submission process or platform2 7,c7 shall make every effort to minimize-- 7i7 the use of forms1 detailed budgets1 supporting documentation1 or written submissions2 and 7ii7 any other burdensome requirement2 7,d7 focuses on solution-based approaches and results-based outcomes2 7,e7 encourages innovation2 and 7,f7 allows proposals or pitches to be presented using various formats or media4 7d7 ,criteria ,the ,administrator shall establish criteria for a grant under this section shall give priority to eligible entities that are providing or plan to provide to new small business concerns-- 7#a7 office1 manufacturing1 or warehouse space1 including appropriate operations infrastructure2 7#b7 access to capital either directly from the eligible entity 7using amounts other than the amounts provided under the grant7 or through guidance and contacts for acquiring capital from outside investors2 7#c7 access to professional services either directly from the eligible entity 7using amounts other than the amounts provided under the grant7 or through guidance and contacts for acquiring professional services1 including accounting and legal services2 or 7#d7 a formal structured mentorship or developmental program that assists new small business concerns with building business skills and competencies4 7e7 ,considerations in choosing recipients ,in determining whether to award a grant under this section to an eligible entity1 the ,administrator shall take into account-- 7#a7 for eligible entities that have in operation a program to support new small business concerns1 the record of the eligible entity in assisting new small business concerns1 including1 for each of the #c full years before the date on which the eligible entity applies for a grant under this section-- 7,a7 the retention rate of new small business concerns in the program of the eligible entity2 7,b7 the average period of participation by new small business concerns in the program of the eligible entity2 7,c7 the total1 average1 and median capital raised by new small business concerns participating in the program of the eligible entity2 and 7,d7 the total1 average1 and median number of employees of new small business concerns participating in the program of the eligible entity2 7#b7 for all eligible entities-- 7,a7 the number of new small business concerns assisted or anticipated to be assisted by the eligible entity2 7,b7 the number of new small business concerns applying or anticipated to apply for assistance from the eligible entity2 7,c7 whether the program of the eligible entity provides or would provide assistance to individuals in gender1 racial1 or ethnic groups underrepresented by existing programs to assist new small business concerns2 and 7,d7 other metrics determined appropriate by the ,administrator2 7#c7 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 concerns1 if the area has sufficient population density1 as determined by the ,administrator2 7#d7 the level of experience of the entrepreneurial leadership of the eligible entity2 and 7#e7 the ability of the eligible entity to use and leverage local strengths1 including human resources1 infrastructure1 and educational institutions4 7f7 ,requirement ,to award grants to certain accelerators ,in order to promote diversity in entrepreneurship1 the ,administrator shall award not less than #ej percent of amounts appropriated for grants in a given fiscal year to-- 7#a7 accelerators located in an area described in subparagraph 7,a71 7,b71 or 7,c7 of section #c7p77#a72 and 7#b7 accelerators for which not less than #ej percent of the small business concerns served by the accelerator are small business concerns-- 7,a7 owned and controlled by socially and economically disadvantaged individuals2 7,b7 owned and controlled by women2 or 7,c7 that are not less than #ea percent owned by one or more-- 7i7 ,native ,americans2 7ii7 individuals participating in the ,transition ,assistance ,program of the ,department of ,defense2 7iii7 individuals who-- 7,i7 served on active duty in any branch of the ,armed ,forces1 including the ,national ,guard and ,reserves2 and 7,,ii7 were discharged or released from such service under conditions other than dishonorable2 7iv7 formerly incarcerated individuals2 or 7v7 individuals with a disability4 7g7 ,matching nonpublic funding requirement 7#a7 ,in general ,an eligible entity receiving a grant under this section shall obtain funds from a private individual or entity 7including a for-profit or nonprofit entity7 that are-- 7,a7 for the same purposes as a grant may be made under this section2 7,b7 used to carry out the program of the eligible entity carried out using the grant under this section2 and 7,c7 in an amount that is not to be less than #ej percent of the amount of the grant under this section4 7#b7 ,form of non-,federal share ,not more than #be percent of the funds obtained under paragraph 7#a7 may be in the form of in-kind contributions4 7h7 ,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 may1 in the discretion of the ,administrator and in addition to any other civil or criminal consequences1 result in the ,administrator withholding payments or ordering the eligible entity to return the grant funds4 7i7 ,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 grant1 including-- 7#a7 the number of new small business concerns participating in the program during each of the #c years preceding the report2 7#b7 the number of new small business concerns applying to participate in the program during each of the #c years preceding the report2 7#c7 the retention rate of new small business concerns in the program2 7#d7 the average period of participation in the program by new small business concerns2 7#e7 the total1 average1 and median capital raised by new small business concerns participating in the program2 7#f7 the total1 average1 and median number of employees of new small business concerns participating in the program2 7#g7 the number of new small business concerns-- 7,a7 owned and controlled by socially and economically disadvantaged individuals2 7,b7 owned and controlled by women2 or 7,c7 that are not less than #ea percent owned by one or more-- 7i7 ,native ,americans2 7ii7 individuals participating in the ,transition ,assistance ,program of the ,department of ,defense2 7iii7 individuals who-- 7,i7 served on active duty in any branch of the ,armed ,forces1 including the ,national ,guard and ,reserves2 and 7,,ii7 were discharged or released from such service under conditions other than dishonorable2 7iv7 formerly incarcerated individuals2 or 7v7 individuals with a disability2 and 7#h7 other metrics determined appropriate by the ,administrator4 7j7 ,report to congress ,the ,administrator shall submit to ,congress an annual report on the program under this section1 which shall include an assessment of the effectiveness of the program1 including an assessment based on the metrics listed in subsection 7i74 7k7 ,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 ,administration1 such as small business development centers1 small business investment companies1 loans under section #g7;a71 assistance under title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq471 and resource partners of the ,administration1 including women's business centers and veteran's business outreach centers4 7l7 ,coordination with the ,department of ,veterans ,affairs ,in consultation with the ,secretary of ,veteran ,affairs1 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 ,affairs4 7m7 ,listing on website ,the ,administrator shall include a list of eligible entities receiving a grant under this section on the website of the ,administration4 7n7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section #f1jjj1jjj for each of the first #e fiscal years beginning after the date of enactment of this section4 4 7b7 ,technical and conforming amendment ,effective on ,january #a1 #bjbj1 section #di7;f77#a7 of the ,small ,business ,act1 as added by subsection 7a71 is amended to read as follows3 7#a7 accelerators located in an area described in subparagraph 7,a71 7,b71 or 7,c7 of section #ca7;b72 and 4