,,ii #aafth ,,congress #b;d ,session ,s4 #difd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #c1 #bjbj,mr4 ,coons 7for himself and ,mr4 ,scott of ,south ,carolina7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to establish a ,next ,generation ,entrepreneurship ,corps program within the ,small ,business ,administration1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,next ,generation ,entrepreneurship ,corps ,act4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the ,united ,states has a successful fellowship for building the next generation of public servants2 and 7#b7 with the devastation facing small businesses in the ,united ,states as a result of the novel #bjai ,coronavirus 7,,covid-#ai71 rebuilding ,main ,street will require a new generation of entrepreneurial talent with the backing of the ,federal ,government4 #c4 ,next generation entrepreneurship corps program ,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 7#ae ,u4,s4,c4 #fegu7 the following3 #di4 ,next generation entrepreneurship corps program 7a7 ,definitions ,in this section-- 7#a7 the term ,committee means the selection committee established under subsection 7k72 7#b7 the term community development financial institution has the meaning given the term in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb772 7#c7 the term distressed region means any census tract or other area that is treated as a low-income community for purposes of section #de;,d of the ,internal ,revenue ,code of #aihf2 7#d7 the term equity investment-- 7,a7 means an investment for an ownership interest in an entity1 the financial return with respect to which is principally aligned with the financial return of the plurality of ownership interests in the entity2 and 7,b7 includes a debt instrument that can be converted to an equity ownership interest in an entity based on future events2 7#e7 the term minority depository institution has the meaning given the term in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note72 7#f7 the term ,program means the ,next ,generation ,entrepreneurship ,corps ,program established under subsection 7b72 7#g7 the term qualified investor means a person that-- 7,a7 invests equity in a small business concern owned and operated by a fellow under the ,program2 and 7,b7 has not more than #bej1jjj1jjj in assets2 7#h7 the term ,,score means the ,service ,corps of ,retired ,executives established under section #h7;b77#a77;,b72 7#i7 the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 and any territory of the ,united ,states2 7#aj7 the term veteran business outreach center means a veteran business outreach center described in section #cb2 and 7#aa7 the term women's business center means a women's business center operating pursuant to section #bi4 7b7 ,establishment 7#a7 ,in general ,there is established within the ,administration an independent fellowship pilot program to be known as the ,next ,generation ,entrepreneurship ,corps ,program to foster entrepreneurship in the most distressed regions of the ,united ,states1 including distressed regions affected by the ,,covid-#ai pandemic4 7#b7 ,administration ,the ,program shall be administered by the ,office of ,entrepreneurial ,development of the ,administration4 7#c7 ,authorization 7,a7 ,in general ,under the ,program1 there shall be #a group of fellows selected each year for #e years of the ,program1 with each group serving for a #b-year period4 7,b7 ,reports ,not later than #a year after the second group of fellows is selected under the ,program1 and every #b years thereafter1 the ,committee shall submit to ,congress an evaluation of the ,program1 along with any recommendations and options to expand the ,program and make the ,program permanent4 7#d7 ,third-party contracts 7,a7 ,in general ,the ,office of ,entrepreneurial ,development of the ,administration may contract with third-party nonprofit organizations that-- 7i7 do or plan to do service work to execute the ,program2 and 7ii7 the ,committee determines have relevant experience to carry out the ,program4 7,b7 ,report ,not later than #ij days after the date of enactment of this ,act1 the ,administrator shall submit to ,congress a report on-- 7i7 the requirements and plans relating to third-party contractors described in subparagraph 7,a72 and 7ii7 how those third-party contractors will begin to carry out the ,program4 7c7 ,stipends 7#a7 ,in general ,each fiscal year1 the ,committee may select not more than #cbj fellows to participate in the ,program and receive a #b-year stipend of #abj1jjj to start and grow a new small business concern4 7#b7 ,authority to reject ,the ,assistant ,administrator of the ,office of ,entrepreneurial ,development of the ,administration shall have the authority to reject any fellow selected by the ,committee to participate in the ,program4 7#c7 ,allowable uses ,the ,committee shall determine the allowable uses of a stipend awarded under this subsection4 7#d7 ,stipend amount ,the amount of a stipend made under this subsection shall be adjusted every #c years to reflect increases in the ,consumer ,price ,index for ,all ,urban ,consumers during that period4 7#e7 ,applications ,each applicant for a stipend made under this subsection shall-- 7,a7 propose a small business concern idea that will be located in a distressed region2 and 7,b7 submit to the ,committee a small business concern plan that demonstrates-- 7i7 that the applicant will have primary decision-making authority in the small business concern2 7ii7 a need for the small business concern of the applicant in the community or how the small business concern solves an economic or social problem in the area to be served by the small business concern or the ,united ,states2 7iii7 how the applicant plans to build their small business concern to employ local talent in entry-level and mid-level positions to ensure quality job growth2 7iv7 a vision for long-term growth in the area to be served by the small business concern2 and 7v7 that the applicant does not1 at the time of application1 have the resources to start and grow a small business concern on their own without assistance4 7#f7 ,preference 7,a7 ,in general ,the ,committee shall give preference to applicants for a stipend under this subsection that are-- 7i7 individuals moving to a distressed region to encourage new small business concern owners in those areas post-,,covid-#ai2 7ii7 individuals who can demonstrate a connection to the ,state or locality in which the proposed small business concern will be located and are willing to relocate within #ae miles of the distressed region2 7iii7 owners of small business concerns whose businesses were closed or who had to significant change their business model or services due to the ,,covid-#ai public health crisis2 7iv7 entrepreneurs within populations underrepresented among small business concern owners in the ,united ,states1 including women and racial and ethnic minority groups2 7v7 veterans2 7vi7 individuals who can demonstrate residence of not less than #b years in a low-income census tract2 7vii7 individuals who have taken non-traditional pathways for professional development1 including individuals without a bachelor's degree or who received ,federal ,pell ,grants under section #dja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a71 who shall not be required to establish a small business concern in a distressed region2 or 7viii7 individuals with business plans that have potential1 if successful1 to be eligible for any contracting assistance program of the ,administration1 including the business development program under section #h7;a71 the ,women ,owned ,small ,business ,federal contracting program under section #h7m71 the service-disabled veteran-owned small business program under section #cf1 and the ,h,u,b,zone program under section #ca4 7,b7 ,considerations ,when evaluating applicants for a stipend under this subsection1 the ,committee-- 7i7 shall differentiate between applicants for a stipend under this subsection that aim to be a high-growth startup and a traditional small business concern2 7ii7 shall consider similar categories of applicants concurrently2 7iii7 should seek to encourage both high-growth and traditional startups across all geographic areas2 and 7iv7 shall-- 7,i7 not prioritize applicants with prior experience with starting and growing a small business concern over applications without that experience2 and 7,,ii7 give equal consideration to applicants with and without the experience described in subclause 7,i74 7,c7 ,additional metrics ,the ,committee shall establish additional metrics by which to evaluate applicants for a stipend under this subsection1 including by creating local and ,state level applicant competitions4 7#g7 ,new entrepreneurs ,the ,committee may award stipends under this subsection to applicants both at the beginning stages of building their small business concern as well as to applicants who have had limited prior business experience4 7#h7 ,number of fellows per ,,score chapter 7,a7 ,in general ,each year1 the ,committee shall1 to the maximum extent practicable1 designate #a fellow per ,,score chapter in the ,united ,states1 provided that the selection process under this subsection remains competitive4 7,b7 ,distribution ,the ,committee shall ensure a fair geographic distribution of fellows selected under this subsection1 including between urban and rural areas1 and may create a process for ensuring that distribution if the ,committee determines necessary4 7d7 ,benefits 7#a7 ,student loan deferment ,for each fellow under the ,program who notifies the ,committee that the fellow has a loan made1 insured1 or guaranteed under part ,b1 ,d1 or ,e of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq42 #ajhg;a et seq42 #ajhg;aa et seq47 that is in repayment-- 7,a7 the ,committee shall-- 7i7 inform the ,secretary of ,education that the fellow is participating in a fellowship through the ,program2 and 7ii7 provide any additional information requested by the ,secretary of ,education regarding the fellow and the loan2 and 7,b7 the ,secretary of ,education shall1 for the period of the fellowship-- 7i7 in the case of a loan made under part ,b or ,e of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajga et seq42 #ajhg;aa et seq471 require that the holder of the loan place the loan in deferment1 in which interest shall accrue and be paid by the ,secretary1 in the same manner as a deferment made under section #dbh7;b77#a77,m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgh7;b77#a77,m772 and 7ii7 in the case of a loan made under part ,d of such ,act 7#bj ,u4,s4,c4 #ajhg;a et seq471 place the loan in deferment1 during which interest shall not accrue1 in the same manner as a deferment made under section #dee7;f77#a7 of such ,act 7#bj ,u4,s4,c4 #ajhg;e7f77#a77 for a ,federal ,direct ,stafford ,loan under such part4 7#b7 ,health care ,with respect to any fellow under the ,program that is not otherwise covered under a health care policy1 the ,administrator shall provide or make available a basic health care policy in accordance with section #adj7;d7 of the ,national and ,community ,service ,act of #aiij 7#db ,u4,s4,c4 #abeid7;d77 for the #b-year period during which the fellow serves under the ,program4 7e7 ,mentor support 7#a7 ,in general ,each fellow under the ,program-- 7,a7 shall be assigned by the designated ,,score chapter of the fellow a local mentor1 and the designated ,,score chapter may work in partnership with a small business development center1 a veteran business outreach center1 a women's business center1 or other local resources to pair the fellow with a mentor and provide mentorship2 7,b7 following completion of the ,program is encouraged to join ,,score1 a small business development center1 a veteran business outreach center1 or a women's business center to contribute back to the ,program and facilitate partnerships with local resource partners of the ,administration2 and 7,c7 shall be assigned by the ,committee a mentor from the ,next ,generation ,entrepreneurship ,corps ,board1 which shall be created by the ,committee and consist of notable chief executive officers of companies and venture capitalists from across the ,united ,states to help advise fellows4 7#b7 ,partnership ,the ,committee shall develop a partnership with the mentor-protege program for small business concerns eligible to receive contracts pursuant to section #h7;a7 to assign mentors during the second year of the fellowship to fellows under the ,program that have proposed a small business concern that may be eligible to receive contracts pursuant to section #h7;a74 7#c7 ,resources ,in providing mentorship under paragraph 7#a71 each resource partner described in that paragraph shall engage the resources of the ,administration in each ,state1 including through partnerships with community organizations4 7f7 ,immersive initial training 7#a7 ,in general ,each fellow under the ,program shall attend an immersive training course designed by the ,committee at the beginning of the fellowship1 which shall-- 7,a7 provide distinct education materials1 including resources and information1 for all fellows on high-growth startups and distinct education materials for all fellows on traditional small business concerns2 7,b7 incorporate skills building1 transfer of business know-how when beginning a small business concern1 and a discussion of resources of the ,administration2 and 7,c7 include information on local resources available from ,,score1 small business development centers1 veteran business outreach centers1 and women's business centers4 7#b7 ,selection of hosts ,each year1 the ,committee shall select not more than #a small business resource partner to host the immersive training course described in paragraph 7#a74 7g7 ,network building ,to foster connections across the ,united ,states with other innovators1 each fellow under the ,program-- 7#a7 shall attend not less than #a small business concern-related conference per year of the fellowship2 and 7#b7 is encouraged to attend regional small business concern-related conferences4 7h7 ,access to capital strategy 7#a7 ,establishment 7,a7 ,in general ,the ,committee shall establish a strategy for access to capital1 insurance1 and other core small business concern services and products1 for use both during and after the ,program1 for fellows under the ,program that provides for the needs of both traditional small business concerns and high-growth startups4 7,b7 ,requirements ,under the strategy established under subparagraph 7,a71 the ,committee shall-- 7i7 provide to each fellow under the ,program information regarding the program under section #h7;a7 and assistance in submitting the information required for the small business concern of the fellow to be certified to participate in the program2 and 7ii7 at the end of each fellowship1 provide follow-up assistance to facilitate the certification of the small business concern of the fellow to participate in the program under section #h7;a74 7#b7 ,matching ,under the strategy established under paragraph 7#a71 the ,committee shall match fellows under the ,program with a full range of lenders1 investors1 and insurers1 including both local and national resources4 7#c7 ,preference ,the ,administrator may give preference to fellows under the ,program with respect to loans under section #g7;a71 microloans under section #g7m71 and assistance provided under title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 to facilitate quick and affordable access to credit during the period of the fellowship and during the #e-year period after the end of the fellowship1 including by-- 7,a7 waiving the credit elsewhere requirement2 and 7,b7 expediting the application timeline for that assistance4 7#d7 ,waiver of personal guarantee ,with respect to high-growth startup small business concerns established by fellows under the ,program1 the ,administrator shall waive the personal guarantee requirement for those small business concerns that apply for loans under section #g7;a71 microloans under section #g7m71 or assistance provided under title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq474 7#e7 ,assistance with access to the #h7;a7 program ,for purposes of participation in the program under section #h7;a7-- 7,a7 a small business concern of a fellow under the ,program shall be eligible to seek certification to participate in the program under section #h7;a7 if the small business concern has been in business in the primary industry classification of the small business concern for at least #ah months2 and 7,b7 the ,administrator-- 7i7 shall evaluate whether to establish an expedited process for certification of a small business concern of a fellow under the ,program to participate in the program under section #h7;a72 and 7ii7 may implement a process described in clause 7i7 for fellows during the period of the fellowship and during the #e-year period after the end of the fellowship4 7i7 ,program fund for capital 7#a7 ,in general ,there is established in the ,treasury a fund1 which shall be available to the ,administrator to provide loans to qualified investors4 7#b7 ,amount of loans 7,a7 ,in general ,a loan to a qualified investor under this subsection shall be not more than #ff4f percent of the amount of equity the qualified investor invested in the applicable small business concern owned and operated by a fellow under the ,program4 7,b7 ,establishment of loan limits ,the ,administrator may establish additional limits on the maximum amount of loans to qualified investors under this subsection if the ,administrator determines the limits are necessary to ensure that the ,administrator may make such loans during the full period of the ,program1 using the amounts made available for such loans4 7#c7 ,loan term ,a loan under this subsection shall have a maturity of not longer than #cj years4 7#d7 ,rate of interest ,the rate of interest on a loan under this subsection shall be equal to the discount window primary credit interest rate most recently published on the ,federal ,reserve ,statistical ,release on selected interest rates 7daily or weekly71 commonly referred to as the ,h4#ae release or the ,federal funds rate4 7#e7 ,funding 7,a7 ,appropriations ,out of funds in the ,treasury not otherwise appropriated1 there is appropriated to the fund established under paragraph 7#a7 #cj1jjj1jjj1 to remain available until expended4 7,b7 ,reinvestment of repayments ,any amounts received from the repayment of a loan under this subsection shall be deposited in the fund established under paragraph 7#a7 and shall remain available until expended4 7j7 ,reporting by fellows ,each fellow under the ,program shall1 on an annual basis1 submit to the ,committee and each mentor assigned to the fellow under subsection 7e7 a progress report on the activities of the fellow4 7k7 ,selection committee 7#a7 ,in general ,the ,administration shall establish a selection committee composed of experts from educational1 scientific1 technical1 and public service backgrounds to-- 7,a7 build the next generation of entrepreneurs under the ,program through a transparent1 competitive1 fair1 and rigorous process2 7,b7 enable entrepreneurs each year under the ,program to successfully build small business concerns in distressed regions by providing guidance1 expertise1 and partnerships between the fellows and business supports2 7,c7 increase the diversity of entrepreneurship in the ,united ,states2 7,d7 increase entrepreneurship in distressed regions2 7,e7 increase talent retention and migration to distressed regions2 7,f7 increase investment and growth in communities in distressed regions2 and 7,g7 ensure the transparent1 efficient1 and effective use of taxpayer funds4 7#b7 ,membership 7,a7 ,composition ,the ,committee shall be composed of #ab members appointed by the ,administrator1 of whom-- 7i7 #a member shall be a small business concern investor such as a venture capitalist or an angel investor2 7ii7 #a member shall be a small business concern banker1 including-- 7,i7 a community development financial institution2 or 7,,ii7 a minority depository institution2 7iii7 #c members shall be successful entrepreneurs2 7iv7 #a member shall be a ,,score representative2 7v7 #a member shall be a mentor in the mentor-protege program for small business concerns eligible to receive contracts pursuant to section #h7;a7 who has relevant contracting experience2 7vi7 #a member shall be an expert on economic development2 7vii7 #a member shall be an expert on distressed regions2 and 7viii7 #c members shall be individuals from the private sector with relevant experience as related to the mission and the duties of the ,committee4 7,b7 ,preference ,there shall be a preference for the appointment of members of the ,committee who are within populations that are underrepresented among small business concern owners in the ,united ,states1 including women and ethnic minority groups4 7,c7 ,chair ,the ,administrator shall select the chair of the ,committee from among members of the ,committee4 7,d7 ,term2 vacancies ,the term of office of each member of the ,committee shall be #f years1 except that-- 7i7 of the members first serving on the ,committee-- 7,i7 #d shall serve terms of #b years2 7,,ii7 #d shall serve terms of #d years2 and 7,,iii7 #d shall serve terms of #f years2 7ii7 any member appointed to fill a vacancy shall serve for the remainder of the term for which his predecessor was appointed and shall be appointed in the same manner as the original appointment for that vacancy was made2 and 7iii7 upon the expiration of their term of office1 any member of the ,committee may continue to serve until their successor is appointed4 7,e7 ,political party ,not more than #f members of the ,committee shall be from the same political party4 7,f7 ,appointments ,appointments to the ,committee shall be made not later than #cj days after the date of enactment of the ,next ,generation ,entrepreneurship ,corps ,act4 7#c7 ,compensation ,members of the ,committee shall serve without pay1 but shall be entitled to reimbursement for travel1 subsistence1 and other necessary expenses incurred in the performance of their duties4 7#d7 ,first meeting ,not later than #cj days after the appointment of a majority of ,committee members1 the ,committee shall hold its first meeting4 7#e7 ,duties and responsibilities ,the ,committee-- 7,a7 shall provide for the conduct of a nationwide competition for selecting fellows to participate in the ,program by-- 7i7 issuing a request for applications not later than #f months after the date of enactment of the ,next ,generation ,entrepreneurship ,corps ,act1 with a deadline for submissions that is not later than #ab months after such date of enactment2 7ii7 partnering with private organizations1 including those with investment experience or experience in the area of investing in businesses1 to provide educational materials to educate the public about the ,program1 help ensure that the ,program is competitive1 and increase awareness of the ,program2 7iii7 partnering with organizations that work with or provide programming for the ,k-#bj entrepreneurship pipeline2 and 7iv7 selecting the first group of fellows not later than #ac months after the date of enactment of the ,next ,generation ,entrepreneurship ,corps ,act2 7,b7 shall carry out the duties described in this section with respect to the ,program2 7,c7 may identify-- 7i7 priority sectors that advance the social and economic development of a geographic area or the ,united ,states1 including social services1 education1 health and nutrition1 child care1 manufacturing1 technology1 or any industry sector that supports the economic development strategy of an area2 and 7ii7 prohibited sectors and businesses that could harm the economic development of communities1 such as-- 7,i7 predatory financial services and addictive substances2 and 7,,ii7 businesses described in section #abj4aaj of title #ac1 ,code of ,federal ,regulations1 or any successor regulation2 7,d7 may create an entity described in section #eja7;c77#c7 of the ,internal ,revenue ,code and exempt from taxation under section #eja7;a7 of such ,code to solicit private funding for the ,program2 7,e7 may work with the ,economic ,development ,agency of the ,department of ,commerce in carrying out the duties of the ,program and providing resources to fellows under the ,program2 and 7,f7 shall assist with the facilitation of pairing1 and encourage designated ,,score chapters to pair1 assigned fellows with local accelerators4 7#f7 ,staff ,the ,committee may appoint a staff director and other personnel as necessary to carry out the duties of the ,committee4 7#g7 ,applicability of ,,faca ,the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 shall not apply to the ,committee4 7l7 ,reports ,not later than #a year after the date on which the ,committee selects the first group of fellows for the ,program1 and every year thereafter1 the ,committee shall submit to ,congress a report that empirically evaluates the effectiveness of the ,program1 including an evaluation by revenues and jobs created and sustained1 small business concern survival rates1 capital raised1 and other metrics determined appropriate by the ,committee4 7m7 ,authorizations of appropriations 7#a7 ,stipends and network building ,there is authorized to be appropriated #ci1bjj1jjj for each fiscal year for the ,program1 of which-- 7,a7 #ch1djj1jjj shall be for stipends made under subsection 7b77#a72 and 7,b7 #hjj1jjj shall be for providing reimbursable expenses for travel and stay up to #b1ejj per fellow to attend #a conference described in subsection 7g74 7#b7 ,,score ,there is authorized to be appropriated #e1jjj1jjj for each fiscal year to ,,score to carry out activities under the ,program4 7#c7 ,immersive initial training ,there is authorized to be appropriated for each fiscal year such sums as may be necessary to provide to the ,committee #d1jjj per fellow under the ,program for the cost of hosting the immersive initial training under subsection 7f74 7#d7 ,staff and administration ,there is authorized to be appropriated #b1ejj1jjj for each fiscal year for staff and administrative expenses of the ,administration to implement the ,program4 7#e7 ,student loan deferral and healthcare ,there is authorized to be appropriated such sums as may be necessary to carry out subsection 7d74 7#f7 ,committee costs ,there is authorized to be appropriated #d1jjj1jjj for each fiscal year for travel and administrative expenses of the ,committee4 4