,,ii #aafth ,,congress #ast ,session ,s4 #bgag ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #bh1 #bjai,mr4 ,cardin 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 spur entrepreneurial ecosystems in underserved communities4 #a4 ,short title ,this ,act may be cited as the ,ushering ,progress by ,leveraging ,innovation and ,future ,technology ,act of #bjai or the ,,uplift ,act of #bjai4 #b4 ,findings ,congress finds the following3 7#a7 ,studies have found that incubators1 accelerators1 and other similar models are effective at increasing revenues1 the number of employees1 and the likelihood that the business venture will be successful for participants4 7#b7 ,according to the ,kauffman ,foundation-- 7,a7 minority-owned and women-owned businesses are half as likely to employ people than nonminority-owned and men-owned businesses2 and 7,b7 if minorities started businesses at the same rate as nonminorities1 approximately #i1ejj1jjj jobs would be added to the ,united ,states economy4 7#c7 ,the ,kauffman ,foundation also found that the percentage of startups in rural communities has dropped from #bj percent in the #aihjs to #ab4b percent4 7#d7 ,according to the ,martin ,prosperity ,institute1 less than #a percent of all venture capital funding goes to businesses located in rural areas4 7#e7 ,according to ,pitch,book1 around #b percent of all venture capital funding goes to businesses with women founders4 7#f7 ,according to ,crunchbase1 less than #c percent of all venture capital funding goes to businesses with ,black and ,hispanic founders4 7#g7 ,historically ,black colleges and universities1 minority-serving institutions1 and community colleges are anchor institutions that serve populations that tend to be underrepresented in entrepreneurship1 particularly in high-growth sectors4 #c4 ,purposes ,the purposes of the ,innovation ,centers ,program established under section #di of the ,small ,business ,act1 as added by this ,act1 are to-- 7#a7 spur economic growth in underserved communities by creating good paying jobs and pathways to prosperity2 7#b7 increase prospects for success for small business concerns in underserved communities1 which often suffer from higher business failure rates than the national average2 7#c7 help create a pipeline for small business concerns in underserved and rural markets into high-growth sectors1 where they are generally underrepresented2 7#d7 help address the multi-decade decline in the rate of new business creation2 7#e7 close the gaps that underserved small business concerns often have in terms of revenue and number of employees1 which represent lost opportunity for the economy2 and 7#f7 encourage collaboration between the ,small ,business ,administration and institutions of higher learning that serve low-income and minority communities4 #d4 ,innovation ,centers ,program 7a7 ,in general ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7#a7 by redesignating section #di as section #ej2 and 7#b7 by inserting after section #dh the following3 #di4 ,innovation ,centers ,program 7a7 ,definitions ,in this section3 7#a7 ,accelerator ,the term accelerator means an organization-- 7,a7 that-- 7i7 works with a startup or growing small business concern for a predetermined period2 and 7ii7 provides mentorship and instruction to scale businesses2 and 7,b7 that may-- 7i7 provide1 but is not exclusively designed to provide1 seed investment in exchange for a small amount of equity2 and 7ii7 offer startup capital or the opportunity to raise capital from outside investors4 7#b7 ,federally recognized area of economic distress ,the term federally recognized area of economic distress means-- 7,a7 a ,h,u,b,zone2 or 7,b7 an area that has been designated as-- 7i7 an empowerment zone under section #acia of the ,internal ,revenue ,code of #aihf2 7ii7 a ,promise ,zone by the ,secretary of ,housing and ,urban ,development2 or 7iii7 a low-income neighborhood or moderate-income neighborhood for purposes of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq474 7#c7 ,growing2 newly established2 startup ,the terms growing1 newly established1 and startup1 with respect to a small business concern1 mean growing1 newly established1 and startup1 respectively1 within the meaning given those terms under section #g7m74 7#d7 ,incubator ,the term incubator means an organization-- 7,a7 that-- 7i7 tends to work with startup and newly established small business concerns2 and 7ii7 provides mentorship to startup and newly established small business concerns2 and 7,b7 that may-- 7i7 provide a co-working environment or a month-to-month lease program2 and 7ii7 work with a startup or newly established small business concern for a predetermined period or an open-ended period4 7#e7 ,individuals with a disability ,the term individuals with a disability means more than one individual with a disability1 as defined in section #c of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abajb74 7#f7 ,eligible entity ,the term eligible entity means-- 7,a7 an institution described in any of paragraphs 7#a7 through 7#g7 of section #cga7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajfgq7a772 or 7,b7 a junior or community college1 as defined in section #cab of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajeh74 7#g7 ,rural area ,the term rural area has the meaning given that term in section #g7m77#aa74 7#h7 ,socially and economically disadvantaged individuals ,the term socially and economically disadvantaged individual means a socially and economically disadvantaged individual within the meaning given that term under section #h7;d77#c77;,c74 7b7 ,establishment ,not later than #a year after the date of enactment of the ,ushering ,progress by ,leveraging ,innovation and ,future ,technology ,act of #bjai1 the ,administrator shall develop and begin implementing a program 7to be known as the ,innovation ,centers ,program7 to enter into cooperative agreements with eligible entities under this section4 7c7 ,authority 7#a7 ,in general ,the ,administrator may-- 7,a7 enter into cooperative agreements to provide financial assistance to eligible entities to conduct #e-year projects for the benefit of startup1 newly established1 or growing small business concerns2 and 7,b7 renew a cooperative agreement entered into under this section for additional #c-year periods1 in accordance with paragraph 7#c74 7#b7 ,project requirements ,a project conducted under a cooperative agreement under this section shall-- 7,a7 include operating as an accelerator1 an incubator1 or any other small business innovation-focused project as the ,administrator approves2 7,b7 be carried out in such locations as to provide maximum accessibility and benefits to the small business concerns that the project is intended to serve2 7,c7 have a full-time staff1 including a full-time director who shall-- 7i7 have the authority to make expenditures under the budget of the project2 and 7ii7 manage the activities carried out under the project2 7,d7 include the joint provision of programs and services by the eligible entity and the ,administration1 which-- 7i7 shall be jointly developed1 negotiated1 and agreed upon1 with full participation of both parties1 pursuant to an executed cooperative agreement between the eligible entity and the ,administration2 and 7ii7 shall include-- 7,i7 #a-to-#a individual counseling as described in section #ba7;c77#c77;,a72 and 7,,ii7 a formal1 structured mentorship program2 7,e7 incorporate continuous upgrades and modifications to the services and programs offered under the project1 as needed to meet the changing and evolving needs of the business community2 7,f7 involve working with underserved groups1 which include-- 7i7 women2 7ii7 socially and economically disadvantaged individuals2 7iii7 veterans2 7iv7 individuals with disabilities2 or 7v7 startup1 newly established1 or growing small business concerns located in rural areas2 7,g7 not impose or otherwise collect a fee or other compensation in connection with participation in the programs and services described in subparagraph 7,d77ii72 and 7,h7 ensure that small business concerns participating in the project have access1 including through resource partners1 to information concerning ,federal1 ,state1 and local regulations that affect small business concerns4 7#c7 ,continued funding 7,a7 ,in general ,an eligible entity that enters into an initial cooperative agreement or a renewal of a cooperative under paragraph 7#a7 may submit an application for a #c-year renewal of the cooperative agreement at such time1 in such manner1 and accompanied by such information as the ,administrator may establish4 7,b7 ,application and approval criteria 7i7 ,criteria ,the ,administrator shall develop and publish criteria for the consideration and approval of applications for renewals by eligible entities under this paragraph1 which shall take into account the structure and the stated goals of the project4 7ii7 ,notification ,not later than #fj days after the date of the deadline to submit applications for each fiscal year1 the ,administrator shall approve or deny any application under this paragraph and notify the applicant for each such application4 7,c7 ,priority ,in allocating funds made available for cooperative agreements under this section1 the ,administrator shall give applications under this paragraph priority over first-time applications for cooperative agreements under paragraph 7#a77;,a74 7#d7 ,limit on use of funds ,amounts received by an eligible entity under a cooperative agreement under this section may not be used to provide capital to a participant in the project carried out under the cooperative agreement4 7#e7 ,scope of authority 7,a7 ,subject to appropriations ,the authority of the ,administrator to enter into cooperative agreements under this section shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations ,acts4 7,b7 ,suspension1 termination1 and failure to renew or extend ,after the ,administrator has entered into a cooperative agreement with an eligible entity under this section1 the ,administrator shall not suspend1 terminate1 or fail to renew or extend the cooperative agreement unless the ,administrator provides the eligible entity with written notification setting forth the reasons therefore and affords the eligible entity an opportunity for a hearing1 appeal1 or other administrative proceeding under chapter #e of title #e1 ,united ,states ,code4 7d7 ,criteria 7#a7 ,in general ,the ,administrator shall-- 7,a7 establish and rank in terms of relative importance the criteria the ,administrator shall use in awarding cooperative agreements under this section1 which shall include-- 7i7 whether the proposed project will be located in-- 7,i7 a federally recognized area of economic distress2 7,,ii7 a rural area2 or 7,,iii7 an area lacking sufficient entrepreneurial development resources1 as determined by the ,administrator2 and 7ii7 whether the proposed project demonstrates a commitment to partner with core stakeholders working with small business concerns in the relevant area1 including-- 7,i7 investment and lending organizations2 7,,ii7 nongovernmental organizations2 7,,iii7 programs of ,state and local governments that are concerned with aiding small business concerns2 7,,iv7 ,federal agencies2 and 7,v7 for-profit organizations with an expertise in small business innovation2 7,b7 make publicly available1 including on the website of the ,administration1 and state in each solicitation for applications for cooperative agreements under this section the selection criteria and ranking established under subparagraph 7,a72 and 7,c7 evaluate and rank applicants for cooperative agreements under this section in accordance with the selection criteria and ranking established under subparagraph 7,a74 7#b7 ,contents ,the criteria established under paragraph 7#a77;,a7-- 7,a7 for eligible entities that have in operation an accelerator1 incubator1 or other small business innovation-focused project shall include the record of the eligible entity in assisting growing1 newly established1 and startup small business concerns1 including1 for each of the #c full years before the date on which the eligible entity applies for a cooperative agreement under this section1 or if the accelerator1 incubator1 or other small business innovation-focused project has been in operation for less than #c years1 for the most recent full year the accelerator1 incubator1 or other small business innovation-focused project was in operation-- 7i7 the number and retention rate of growing1 newly established1 and startup business concerns in the program of the eligible entity2 7ii7 the average period of participation by growing1 newly established1 and startup small business concerns in the program of the eligible entity2 7iii7 the total and median capital raised by growing1 newly established1 and startup small business concerns participating in the program of the eligible entity2 7iv7 the number of investments or loans received by growing1 newly established1 and startup small business concerns participating in the program of the eligible entity2 and 7v7 the total and median number of employees of growing1 newly established1 and startup small business concerns participating in the program of the eligible entity2 and 7,b7 for all eligible entities-- 7i7 shall include whether the eligible entity-- 7,i7 indicates the structure and goals of the project2 7,,ii7 demonstrates ties to the business community2 7,,iii7 identifies the resources available for the project2 7,,iv7 describes the capabilities of the project1 including coordination with local resource partners and local or national lending partners of the ,administration2 7,v7 addresses the unique business and economic challenges faced by the community in which the eligible entity is located and businesses in that community2 or 7,,vi7 provides a proposed budget and plan for use of funds2 and 7ii7 may include any other criteria determined appropriate by the ,administrator4 7e7 ,program examination 7#a7 ,in general ,the ,administrator shall-- 7,a7 develop and implement an annual programmatic and financial examination of each project conducted under this section1 under which each eligible entity entering into a cooperative agreement under this section shall provide to the ,administrator-- 7i7 an itemized cost breakdown of actual expenditures for costs incurred during the preceding year2 and 7ii7 documentation regarding-- 7,i7 the amount of matching assistance from non-,federal sources obtained and expended by the eligible entity during the preceding year in order to meet the matching requirement2 and 7,,ii7 with respect to any in-kind contributions that were used to satisfy the matching requirement1 verification of the existence and valuation of those contributions2 and 7,b7 analyze the results of each examination conducted under subparagraph 7,a7 and1 based on that analysis1 make a determination regarding the programmatic and financial viability of each eligible entity4 7#b7 ,conditions for continued funding ,in determining whether to continue or renew a cooperative agreement under this section1 the ,administrator-- 7,a7 shall consider the results of the most recent examination of the project under paragraph 7#a72 and 7,b7 may terminate or not renew a cooperative agreement1 if the ,administrator determines that the eligible entity has failed to provide any information required to be provided 7including information provide for purpose of the annual report by the ,administrator under subsection 7m77 or the information provided by the eligible entity is inadequate4 7f7 ,training and technical assistance ,the ,administrator-- 7#a7 shall provide in person or online training and technical assistance to each eligible entity entering into a cooperative agreement under this section at the beginning of the participation of the eligible entity in the ,innovation ,centers ,program in order to build the capacity of the eligible entity and ensure compliance with procedures established by the ,administrator2 7#b7 shall ensure that the training and technical assistance described in paragraph 7#a7 is provided at no cost or at a low cost2 and 7#c7 may enter into a contract to provide the training or technical assistance described in paragraph 7#a7 with #a or more organizations with expertise in the entrepreneurial development programs of the ,administration1 innovation1 and entrepreneurial development4 7g7 ,coordination ,in carrying out a project under this section1 an eligible entity may coordinate with-- 7#a7 resource and lending partners of the ,administration2 7#b7 programs of ,state and local governments that are concerned with aiding small business concerns2 and 7#c7 other ,federal agencies1 including to provide services to and assist small business concerns in participating in the ,,sbir and ,,sttr programs1 as defined in section #i7;e74 7h7 ,funding limit ,the amount of financial assistance provided to an eligible entity under a cooperative agreement entered into under this section shall be not more than #djj1jjj during each year4 7i7 ,matching requirement 7#a7 ,in general ,an eligible entity shall contribute toward the cost of the project carried out under the cooperative agreement under this section an amount equal to #ej percent of the amount received under the cooperative agreement4 7#b7 ,in-kind contributions ,not more than #ej percent of the contribution of an eligible entity under paragraph 7#a7 may be in the form of in-kind contributions4 7#c7 ,waiver 7,a7 ,in general ,if the ,administrator determines that an eligible entity is unable to meet the contribution requirement under paragraph 7#a71 the ,administrator may reduce the required contribution4 7,b7 ,presumption ,an eligible entity shall be presumed to be unable to meet the contribution requirement under paragraph 7#a7 if the eligible entity has-- 7i7 long-term debt in an amount that is less than #aj1jjj1jjj2 7ii7 an invested market endowment in an amount that is less than #ae1jjj1jjj2 or 7iii7 total net liquid assets in an amount that is less than #ae1jjj1jjj4 7#d7 ,failure to obtain non-federal funding ,if an eligible entity fails to obtain the required non-,federal contribution during any project1 or the reduced non-,federal contribution as determined by the ,administrator-- 7,a7 the eligible entity shall not be eligible thereafter for any other project for which it is or may be funded by the ,administration2 and 7,b7 prior to approving assistance for the eligible entity for any other projects1 the ,administrator shall specifically determine whether the ,administrator believes that the eligible entity will be able to obtain the requisite non-,federal funding and enter a written finding setting the forth the reasons for making that determination4 7#e7 ,rule of construction ,the demonstrated inability of an eligible entity to meet the contribution requirement under paragraph 7#a7 shall not disqualify the eligible entity from entering into a cooperative agreement under this section4 7j7 ,contract authority 7#a7 ,in general ,an eligible entity may enter into a contract with a ,federal department or agency to provide specific assistance to startup1 newly established1 or growing small business concerns4 7#b7 ,performance ,performance of a contract entered into under paragraph 7#a7 may not hinder the eligible entity in carrying out the terms of the cooperative agreement under this section4 7#c7 ,exemption from matching requirement ,a contract entered into under paragraph 7#a7 shall not be subject to the matching requirement under subsection 7i74 7#d7 ,additional provision ,notwithstanding any other provision of law1 a contract for assistance under paragraph 7#a7 shall not be applied to any ,federal department or agency's small business1 woman-owned business1 or socially and economically disadvantaged business contracting goal under section #ae7;g74 7k7 ,privacy requirements 7#a7 ,in general ,an eligible entity may not disclose the name1 address1 or telephone number of any individual or small business concern receiving assistance under this section without the consent of such individual or small business concern1 unless-- 7,a7 the ,administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a ,federal or ,state agency2 or 7,b7 the ,administrator considers such a disclosure to be necessary for the purpose of conducting a financial audit of an eligible entity1 but a disclosure under this subparagraph shall be limited to the information necessary for such audit4 7#b7 ,administration use of information ,this subsection shall not-- 7,a7 restrict ,administration access to program activity data2 or 7,b7 prevent the ,administration from using client information 7other than the information described in subparagraph 7,a77 to conduct client surveys4 7#c7 ,regulations ,the ,administrator shall issue regulations to establish standards for requiring disclosures during a financial audit under paragraph 7#a77;,b74 7l7 ,publication of information ,the ,administrator shall-- 7#a7 publish information about the program under this section online1 including-- 7,a7 on the website of the ,administration2 and 7,b7 on the social media of the ,administration2 and 7#b7 request that the resource and lending partners of the ,administration and the district offices of the ,administration publicize the program4 7m7 ,annual reporting ,not later than #a year after the date on which the ,administrator establishes the program under this section1 and every year thereafter1 the ,administrator shall submit to ,congress a report on the activities under the program1 including-- 7#a7 the number of startup1 newly established1 and growing small business concerns participating in the project carried out by each eligible entity under a cooperative agreement under this section 7in this paragraph referred to as participants71 including a breakdown of the owners of the participants by race1 gender1 veteran status1 and urban versus rural location2 7#b7 the retention rate for participants2 7#c7 the total and median amount of capital accessed by participants1 including the type of capital accessed2 7#d7 the total and median number of employees of participants2 7#e7 the number and median wage of jobs created by participants2 7#f7 the number of jobs sustained by participants2 and 7#g7 information regarding such other metrics as the ,administrator determines appropriate4 7n7 ,funding 7#a7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 7#b7 ,administrative expenses ,of the amount made available to carry out this section for any fiscal year1 not more than #aj percent may be used by the ,administrator for administrative expenses4 4 7b7 ,regulations ,the ,administrator of the ,small ,business ,administration shall promulgate regulations to carry out section #di of the ,small ,business ,act1 as added by subsection 7a74