,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #ihhj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bg1        
#bjbd,mr4 ,phillips introduc$ ! foll[+  
bill2 :i* 0 ref]r$ to ! ,committee on   
,small ,bus9ess1 & 9 addition to !      
,committees on ,education & ! ,work=ce1 
& ,ways & ,means1 = a p]iod to be       
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,small   
,bus9ess ,act to e/abli% !              
,entrepr5eur%ip ,corps ,national ,s]vice
 ,program1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,entrepr5eur%ip ,corps = ,national      
,s]vice ,act4  #b4 ,entrepr5eur%ip      
,corps ,national ,s]vice ,program  7a7  
,9 g5]al ,! ,small ,bus9ess ,act 7#ae   
,u4,s4,c4 #fca et seq47 is am5d$-- 7#a7 
by r$esignat+ section #di z section #ej2
 &  7#b7 by ins]t+ aft] section #dh !   
foll[+ new section3  #di4               
,entrepr5eur%ip ,corps ,national ,s]vice

 ,program  7a7 ,def9itions ,9 ?is       
section3 7#a7 ,associate adm9i/rator ,! 
t]m ,associate ,adm9i/rator means !     
,head ( ! ,(fice ( ,inve/m5t &          
,innovation ( ! ,adm9i/ration4  7#b7    
,c5sus tract ,! t]m c5sus tract means a 
c5sus tract del9eat$ by ! ,unit$ ,/ates 
,bureau ( ! ,c5sus 9 ! mo/ rec5t        
dec5nial c5sus4  7#c7 ,di/ress$ area ,! 
t]m di/ress$ area means a c5sus tract   
exp]i5c+ economic di/ress1 z det]m9$ by 
! ,associate ,adm9i/rator bas$ on !     
foll[+ economic factors = su* c5sus     
tract3 7,a7 ,pov]ty rate4  7,b7         
,unemploym5t rate4  7,c7 ,m$ian income4 
7,d7 ,! numb] ( bus9esses1 includ+ !    
rate ( new bus9ess =mation4  7,e7 ,!    
numb] ( individuals belong+ to an       
,indian tribe 7z def9$ 9 section        
#h7;a77#ac771 includ+ ! p]c5tage ( !    
total population compris$ ( su*         
individuals4  7,f7 ,su* o!r economic    
factors z det]m9$ appropriate by !      
,associate ,adm9i/rator4  7#d7 ,fell[ ,!
 t]m fell[ means an individual          

p>ticipat+ 9 ! program4  7#e7           
,p>ticipat+ bus9ess ,! t]m p>ticipat+   
bus9ess means a small bus9ess conc]n to 
:i* a fell[ is assign$ "u ! program4    
7#f7 ,program ,! t]m program means !    
program e/abli%$ "u subsection 7b74  7b7
 ,e/abli%m5t  7#a7 ,9 g5]al ,n lat] ?an 
#ahj days aft] ! date ( ! enactm5t ( ?is
 ,act1 ! ,adm9i/rator %all e/abli% 9 !  
,(fice ( ,inve/m5t & ,innovation ( !    
,adm9i/ration a program1 to be kn[n z ! 
,entrepr5eur%ip ,corps ,national ,s]vice
 ,program1 to support economic activity 
& job creation 9 di/ress$ areas ( !     
,unit$ ,/ates by provid+ to small       
bus9ess conc]ns locat$ 9 di/ress$ areas 
individuals ) ! skills & tra9+ ne$$ by  
su* small bus9ess conc]ns4  7#b7        
,program adm9i/ration ,! ,associate     
,adm9i/rator %all adm9i/] ! program4    
7c7 ,program fell[s  7#a7 ,9 g5]al ,to  
be a fell[1 an individual mu/-- 7,a7 be 
at lea/ #ba ye>s ( age2  7,b7 h obta9$  
an associates1 baccalaureate1 or high]  
degree2 &  7,c7 ent] into a writt5      

agreem5t ) ! ,associate ,adm9i/rator "u 
p>agraph 7#b74  7#b7 ,s]vice obligation 
agreem5t ,an individual may become a    
fell[ only if ! individual ent]s into a 
writt5 agreem5t ) ! ,associate          
,adm9i/rator t requires ! individual to 
s]ve z a fell[ = a p]iod ( two ye>s &   
conta9+ su* o!r t]ms z det]m9$          
appropriate by ! ,associate             
,adm9i/rator4  7#c7 ,application ,an    
individual seek+ to be a fell[ %all     
submit to ! ,associate ,adm9i/rator an  
application at su* "t1 9 su* mann]1 &   
conta9+ su* in=mation z ! ,associate    
,adm9i/rator det]m9es appropriate4  7#d7
 ,fell[ selection  7,a7 ,9 g5]al ,!     
,associate ,adm9i/rator %all select !   
fell[s 9 accordance ) ?is p>agraph4     
7,b7 ,selection crit]ia ,:5 select+     
fell[s ! ,associate ,adm9i/rator %all   
consid] ! foll[+3 7i7 ,! academic &     
pr(essional backgr\nd & accompli%m5ts ( 
! individual1 includ+ demon/rat$        
exp]tise 9 acc\nt+1 f9ance1 economics1  
/ati/ics1 m>ket+1 comput] sci5ce1       

ma!matics1 or o!r subject areas relat$  
to bus9ess4  7ii7 ,recomm5dations f     
tea*]s1 coa*es1 m5tors1 & o!rs 9 a      
position to evaluate ! skills1 exp]tise1
 backgr\nd1 "*1 & fitness = s]vice 9 !  
program ( ! individual4  7iii7 ,!       
reasons provid$ by ! individual =       
p>ticipat+ 9 ! program4  7iv7 ,su* o!r  
crit]ia z ! ,associate ,adm9i/rator     
det]m9es appropriate bas$ on ! nature1  
purpose1 & objectives ( ! program4  7,c7
 ,fell[ class size ,! ,associate        
,adm9i/rator %all det]m9e ! numb] (     
fell[s select$ ea* ye>4  7d7 ,p>ticipat+
 bus9esses  7#a7 ,9 g5]al ,to be        
eligible to be assign$ a fell[ "u !     
program1 a small bus9ess conc]n mu/--   
7,a7 h an employ] id5tification numb]   
7assign$ pursuant to section #faji ( !  
,int]nal ,rev5ue ,code ( #aihf72  7,b7 h
 be5 e/abli%$ n m ?an five ye>s prior ! 
date on :i* su* small bus9ess conc]n    
submits ! application requir$ "u        
p>agraph 7#b72  7,c7 h its headqu>t]s or
 ma9 (fice1 & ! locations at :i* a      

majority ( employees are employ$1 locat$
 9 di/ress$ areas2 &  7,d7 9 ! #ab-mon? 
p]iod imm$iately prec$+ ! date on :i*   
su* small bus9ess conc]n submits !      
application requir$ by p>agraph 7#b71 h 
gross sales ( n less ?an #bjj1jjj4  7#b7
 ,application ,a small bus9ess seek+ to 
be assign$ a fell[ "u ! program %all    
submit to ! ,associate ,adm9i/rator an  
application at su* "t1 9 su* mann]1 &   
conta9+ su* in=mation z ! ,associate    
,adm9i/rator det]m9es appropriate4  7#c7
 ,selection ( p>ticipat+ bus9esses  7,a7
 ,9 g5]al ,! ,associate ,adm9i/rator    
%all select small bus9ess conc]ns to :i*
 a fell[ w be assign$ "u ! program 9    
accordance ) subp>agraph 7,b74  7,b7    
,p>ticipat+ bus9ess selection ,:5       
select+ :i* small bus9ess conc]ns %all  
be assign$ a fell[ "u ! program1 !      
,associate ,adm9i/rator %all consid] !  
foll[+3 7i7 ,! gr[? or pot5tial =       
success ( ! small bus9ess conc]n1 z     
demon/rat$ by ! f9ancial /atem5ts ( !   
small bus9ess conc]n4  7ii7 ,!          

demon/rat$ ability ( ! small bus9ess    
conc]n to access capital or attract     
equity inve/m5t 9 su* conc]n4  7iii7 ,! 
bus9ess plan ( ! small bus9ess conc]n t 
includes a /rategy = long-t]m success1  
if any4  7iv7 ,! ability ( ! small      
bus9ess conc]n to contribute to improv+ 
economic conditions 9 ! di/ress$ area4  
7v7 ,! demon/rat$ ne$ ( ! small bus9ess 
conc]n = a fell[ "u ! program4  7vi7    
,any o!r crit]ia t ! ,associate         
,adm9i/rator det]m9es appropriate4  7e7 
,assignm5t ( fell[s  7#a7 ,9 g5]al ,!   
,associate ,adm9i/rator %all assign     
fell[s to small bus9ess conc]ns "u !    
program 9 accordance ) ?is subsection4  
7#b7 ,consid]ations ,:5 assign+ fell[s  
to small bus9ess conc]ns bus9ess "u !   
program1 ! ,associate ,adm9i/rator %all 
consid]-- 7,a7 ! ne$s ( ! small bus9ess 
conc]n2  7,b7 ! exp]tise1 exp]i5ce1     
skills1 backgr\nd1 & int]e/s ( ! fell[2 
&  7,c7 ! pref]5ces ( ! fell[ reg>d+ !  
location ( ! small bus9ess conc]n to :i*
 su* fell[ is assign$ "u ! program4     

7#c7 ,duration ,! assignm5t ( a fell[ to
 a small bus9ess conc]n "u ! program    
%all be = a p]iod ( two ye>s4  7#d7     
,assignm5t limit ,! ,associate          
,adm9i/rator may n assign a fell[ "u !  
program to any small bus9ess conc]n to  
:i*1 z ( ! date on :i* su* assignm5t w  
comm5ce1 any o!r fell[ is assign$4  7#e7
 ,res\rces  7,a7 ,9 g5]al ,a p>ticipat+ 
bus9ess %all provide to ! fell[ assign$ 
to ! p>ticipat+ bus9ess "u ! program !  
res\rces requir$ = ! fell[ to c>ry out !
 duties su* p>ticipat+ bus9ess assigns  
to su* fell[4  7,b7 ,reimbursem5t ,!    
,associate ,adm9i/rator %all reimburse a
 p>ticipat+ bus9ess = ! reasonable co/s 
incurr$ by su* p>ticipat+ bus9ess = !   
res\rces provid$ by ! bus9ess "u        
subp>agraph 7,a74  7#f7 ,reassignm5t ,if
 a fell[ assign$ to a p>ticipat+ bus9ess
 "u ! program is unable to cont9ue su*  
assignm5t1 or = su* o!r reasons z       
det]m9$ appropriate by ! ,associate     
,adm9i/rator1 ! ,associate ,adm9i/rator 
may reassign su* fell[ to ano!r small   

bus9ess conc]n "u ! program = ! rema9d] 
( ! p]iod ( ! assignm5t to ! p>ticipat+ 
bus9ess4  7f7 ,b5efits  7#a7            
,comp5sation  7,a7 ,9 g5]al ,!          
,associate ,adm9i/rator %all pay to     
fell[s a rate ( pay det]m9$ appropriate 
by ! ,associate ,adm9i/rator4  7,b7     
,crit]ia ,:5 det]m9+ ! rate ( pay =     
fell[s "u subp>agraph 7,a71 ! ,associate
 ,adm9i/rator %all ensure t ! rate (    
pay-- 7i7 is comp>able ) ! rate ( pay ( 
employees ( ! ,f$]al ,gov]nm5t ) simil> 
educational atta9m5t1 exp]i5ce1 & tra9+2
 &  7ii7 is n less ?an ! great] ( !     
applicable ,/ate m9imum wage or ! ,f$]al
 m9imum h\rly rate "u ! ,fair ,labor    
,/&>ds ,act ( #aich 7#bi ,u4,s4,c4 #bja 
et seq474  7#b7 ,education grants  7,a7 
,9 g5]al ,an individual :o completes a  
p]iod ( s]vice z a fell[ "u program 9   
accordance ) ! agreem5t su* individual  
ent]$ into "u subsection 7c77#b7 &      
submits ! application requir$ "u        
subp>agraph 7,b7 %all be eligible to    
receive a grant 9 accordance ) ?is      

p>agraph4  7,b7 ,application ,an        
individual seek+ a grant "u ?is p>agraph
 %all submit to ! ,associate            
,adm9i/rator an application at su* "t1 9
 su* mann]1 & conta9+ su* in=mation z ! 
,associate ,adm9i/rator det]m9es        
appropriate4  7,c7 ,grant am\nt ,!      
aggregate am\nt ( a grant made "u ?is   
p>agraph to an individual describ$ 9    
subp>agraph 7,b7 may n exce$ ! maximum  
am\nt ( a grant "u section #dja ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajgj;a7 = ! aw>d ye> 9 :i*   
su* individual becomes eligible = a     
grant "u ?is p>agraph4  7,d7            
,disbursem5t  7i7 ,initial disbursem5t  
,^u an individual describ$ 9 subp>agraph
 7,a7 becom+ eligible to receive a grant
 "u ?is p>agraph1 ! ,associate          
,adm9i/rator %all disburse am\nts "u su*
 grant 9 an am\nt equal to ! less] (--  
7,i7 ! maximum am\nt all[$ "u           
subp>agraph 7,d72 or  7,,ii7 ! am\nt    
equal to ! sum ( ! aggregate am\nt ( !  
out/&+ loans ( su* individual describ$ 9

 subclauses 7,i7 ?r\gh 7,,iii7 (        
subp>agraph 7,e77i7 & ! am\nt ( !       
exp5ses describ$ 9 subclause 7,,iv7 (   
su* subp>agraph ow$ by su* individual z 
( ! date on :i* su* individual becomes  
eligible = su* grant4  7ii7 ,roll+      
disbursem5t ,dur+ ! sev5-ye> p]iod      
beg9n+ on ! date on :i* ! recipi5t ( su*
 grant becomes eligible to receive su*  
grant1 ! ,associate ,adm9i/rator %all   
disburse to su* recipi5t additional     
am\nts "u su* grant equal to ! am\nt (  
loans & exp5ses describ$ 9 subp>agraph  
7,e7 t su* recipi5t incurs on or aft]   
su* date1 z su* recipi5t incurs su*     
loans & exp5ses1 to ! ext5t t !         
aggregate ( su* additional am\nts & !   
am\nt disburs$ "u clause 7i7 = su* grant
 does n exce$ ! maximum am\nt all[$ =   
su* grant "u subp>agraph 7,c74  7,e7    
,uses  7i7 ,9 g5]al ,! recipi5t ( a     
grant aw>d$ "u ?is p>agraph may use     
am\nts receiv$ "u su* grant only to pay 
! foll[+3 7,i7 ,qualifi$ ,f$]al /ud5t   
loans made to su* recipi5t4  7,,ii7     

,loans made to su* recipi5t-- 7aa7 "u   
subp>t ,,ii ( "p ,a ( title ,,vii ( !   
,public ,heal? ,s]vice ,act2 or  7bb7 "u
 "p ,e ( title ,,viii ( t ,act4  7,,iii7
 ,loans made to su* recipi5t-- 7aa7 by a
 ,/ate to pay po/second>y educational   
exp5ses ( ! recipi5t2 or  7bb7 by a     
public in/itution ( high] education 7z  
def9$ 9 section #aja ( ! ,high]         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajja77 to pay a borr[]'s co/s (        
att5dance at su* in/itution4  7,,iv7    
,exp5ses incurr$ by su* recipi5t = a    
program ( education lead+ to an advanc$ 
degree to ! ext5t t su* exp5ses are--   
7aa7 exp5ses = :i* am\nts payable to an 
individual "u section                   
#ccac7;c77#a77;,b77iv7 ( title #ch1     
,unit$ ,/ates ,code1 may be us$2 &  7bb7
 ow$ or incurr$ on or aft] ! date on :i*
 su* recipi5t becomes eligible = su*    
grant4  7ii7 ,qualifi$ ,f$]al /ud5t loan
 def9$ ,9 ?is subp>agraph1 ! t]m        
qualifi$ ,f$]al /ud5t loan means a loan 
made "u ,"p ,d ( title ,,iv ( ! ,high]  

,education ,act ( #aife 7#ajhg;a et     
seq47 except su* t]m does n include--   
7,i7 a ,f$]al ,direct ,,plus ,loan made 
to ! p>5ts ( a dep5d5t /ud5t2 or  7,,ii7
 a ,f$]al ,direct ,consolidation ,loan  
made "u section #dee7;g7 ( su* ,act to !
 ext5t t su* loan 0 us$ to repay a      
,f$]al ,direct ,,plus ,loan made to !   
p>5ts ( a dep5d5t /ud5t4  7,f7 ,s+le    
aw>d ,an individual may receive only a  
s+le grant "u ?is p>agraph4  7,g7       
,outrea* ,! ,associate ,adm9i/rator     
%all-- 7i7 conduct outrea* to           
in/itutions ( high] education 7z def9$  
"u section #aja7;a7 ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajja7;a777 to provide in=mation to     
/ud5ts at su* in/itutions ab\t ! b5efits
 ( p>ticipat+ z a fell[ 9 ! program2 &  
7ii7 seek to coord9ate ) in/itutions (  
high] education & bus9esses to develop  
academic & pr(essional opportunities =  
=m] fell[s1 includ+ opportunities =     
employm5t & to obta9 advanc$ degrees4   
7#c7 ,noncompetitive appo9tm5t          

eligibility ,dur+ ! "o-ye> p]iod beg9n+ 
on ! date on :i* an individual completes
 a p]iod s]vice z a fell[ "u ! program 9
 accordance ) ! agreem5t su* individual 
ent]$ into "u subsection 7c77#b71 ! head
 ( a ,f$]al ag5cy may1 )\t reg>d to !   
provisions ( sub*apt] ,i ( *apt] #cc (  
title #e1 ,unit$ ,/ates ,code1 o!r ?an  
section #ccjc & #ccbh ( su* title1      
appo9t su* individual to a vacant       
position 9 ! competitive s]vice 9 su*   
ag5cy = :i* su* individual is qualifi$4 
7g7 ,/atus  7#a7 ,9 g5]al ,except z     
provid$ by ?is subsection-- 7,a7 a fell[
 is n an employee (-- 7i7 any p>ticipat+
 bus9ess to :i* su* fell[ is assign$ "u 
! program = ! purpose ( any law1 includ+
 ! ,int]nal ,review ,code ( #aihf2 or   
7ii7 ! ,f$]al ,gov]nm5t2 &  7,b7        
selection = p>ticipation 9 ! program    
does n con/itute an appo9tm5t z an (fic]
 or employee ( ! ,f$]al ,gov]nm5t = !   
purpose ( any law4  7#b7 ,exceptions ,a 
fell[ is deem$ to be an employee (--    
7,a7 ! ,f$]al ,gov]nm5t = purposes (--  

7i7 *apt] #ha ( title #e1 ,unit$ ,/ates 
,code2 &  7ii7 *apt] #aga ( title #bh1  
,unit$ ,/ates ,code1 & any o!r ,f$]al   
tort liability /atute2 &  7,b7 !        
,adm9i/ration = ! purposes ( *apt]s #hc 
& #hd ( title #e1 ,unit$ ,/ates ,code4  
7#c7 ,heal? c>e ,a fell[ is deem$ to be 
a full-"t employee ( ! ,adm9i/ration = !
 purposes ( *apt] #hi ( title #e1 ,unit$
 ,/ates ,code1 except t a fell[ or =m]  
fell[ may n make ! election "u section  
#hije;a7a7 ( su* title ) respect to     
cov]age "u su* *apt] obta9$ pursuant ?is
 p>agraph4  7#d7 ,employm5t taxes ,=    
purposes ( subtitle ,c ( ! ,int]nal     
,rev5ue ,code ( #aihf1 ! ,small ,bus9ess
 ,adm9i/ration %all be treat$ z !       
employ] ( ea* fell[ ) respect to !      
program4  7h7 ,report to congress ,n    
lat] ?an "o ye> aft] ! e/abli%m5t ( !   
program1 & annually !reaft]1 !          
,associate ,adm9i/rator %all submit to !
 ,committee on ,small ,bus9ess &        
,entrepr5eur%ip ( ! ,s5ate & !          
,committee on ,small ,bus9ess ( ! ,h\se 

( ,repres5tatives a report on ! program1
 includ+-- 7#a7 ! effects ( fell[s on ! 
p>ticipat+ bus9esses to :i* su* fell[s h
 be5 assign$ "u ! program2  7#b7 !      
economic effects ( ! program on di/ress$
 communities 9 :i* p>ticipat+ bus9esses 
are locat$2  7#c7 ! ov]all p]=mance (   
fell[s "u ! program2  7#d7 ! ov]all     
p]=mance ( p>ticipat+ bus9esses2 &  7#e7
 recomm5dations to modify ! program to m
 effectively support economic activity &
 job creation 9 di/ress$ areas ( !      
,unit$ ,/ates4  4  7b7 ,/ud5t loan      
=giv5ess cr$it ,section #dee7m77#c77;,b7
 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajhg;e7m77#c77;,b77 is      
am5d$-- 7#a7 9 clause 7i71 by /rik+ 2 or
 & ins]t+ a semicolon2  7#b7 9 clause   
7ii71 by /rik+ ! p]iod at ! end & ins]t+
 2 or2 &  7#c7 by add+ at ! end ! foll[+
 new clause3  7iii7 s]v+ z a fell[ 9 !  
,entrepr5eur%ip ,corps ,national ,s]vice
 ,program e/abli%$ "u section #di ( !   
,small ,bus9ess ,act4  4  7c7 ,exclusion
 f adju/$ gross income  7#a7 ,9 g5]al   

,"p ,,iii ( sub*apt] ,b ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci;,i ! foll[+ new      
section3  #aci;,j4 ,small bus9ess fell[ 
,9 ! case ( a small bus9ess conc]n to   
:i* a fell[ is assign$ "u !             
,entrepr5eur%ip ,corps ,national ,s]vice
 ,program e/abli%$ "u section #di ( !   
,small ,bus9ess ,act1 gross income does 
n include ! value ( any labor p]=m$ by  
su* fell[4  4  7#b7 ,cl]ical am5dm5t ,! 
table ( sections = "p ,,iii ( sub*apt]  
,b ( su* ,code is am5d$ by ins]t+ aft] !
 item relat+ to section #aci;,i ! foll[+
 new item3  ,sec4 #aci;,j4 ,small       
bus9ess fell[4  4  7#c7 ,effective date 
,! am5dm5t made by ?is subsection %all  
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is subsection4