,,ii #aaith ,,congress #b;d ,session ,s4 #chgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ab1 #bjbf,mr4 ,markey 7for himself1 ,ms4 ,hirono1 and ,mr4 ,booker7 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 communities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,place-based ,access1 ,resources1 and ,knowledge ,act or the ,,spark ,act4 #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 #bjbc ,report on ,startup ,firms ,owned by ,people of ,color3 ,findings from the #bjbb ,small ,business ,credit ,survey-- 7,a7 startups owned by racial minorities are more than twice as likely to be denied for financing from lenders than non-minority-owned startups2 and 7,b7 mission-oriented financial institutions and community-based lenders1 including minority depository institutions and community development financial institutions1 are critical in helping minority-owned businesses access capital4 7#c7 ,according to the ,kauffman ,foundation-- 7,a7 minority-owned and women-owned businesses are half as likely to have workers than non-minority-owned and men-owned businesses2 and 7,b7 if minorities started businesses at the same rate as non-minorities1 approximately #i1ejj1jjj jobs would be added to the economy of the ,united ,states4 7#d7 ,according to the ,center for ,rural ,innovation-- 7,a7 less than #a percent of all venture capital funding goes to businesses located in rural areas2 7,b7 rural entrepreneurship rates have fallen from #bj percent in the #aihjs to just more than #ab percent in the #bjajs2 and 7,c7 financial barriers in rural areas are especially prominent for minority populations4 7#e7 ,according to ,pitch,book1 only #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 #c4 ,purposes ,the purposes of the ,spark ,program established under section #di of the ,small ,business ,act1 as amended by this ,act1 are to-- 7#a7 spur economic growth in underserved communities by creating good paying jobs and increasing access to capital2 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 create a pipeline for individuals in underserved and rural markets into small business ownership2 7#d7 close the gaps that underserved small business concerns often have in terms of revenue and number of employees1 which represent lost opportunity for the economy of the ,united ,states2 7#e7 encourage collaboration between the ,small ,business ,administration and organizations that serve low-income1 minority1 and rural communities2 and 7#f7 grow existing incubators and accelerators that are focused on empowering underserved communities and entrepreneurs4 #d4 ,spark ,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 #ea2 and 7#b7 by inserting after section #dh 7#ae ,u4,s4,c4 #fegu7 the following3 #di4 ,spark ,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 7ii7 provides mentorship and instruction to scale businesses2 and 7iii7 increases the investment readiness of small business concerns2 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 ,eligible entity 7,a7 ,in general ,the term eligible entity means an organization operating1 or planning to operate-- 7i7 an accelerator2 7ii7 an incubator2 or 7iii7 any other small business innovation-focused project1 as approved by the ,administrator4 7,b7 ,inclusions ,the term eligible entity includes any of the following1 if the organization is as described in subparagraph 7,a73 7i7 ,an organization described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf4 7ii7 ,a community development financial institution1 as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7iii7 ,a minority depository institution1 as defined in section #cjh7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note74 7iv7 ,a lender under the program established under section #g7m74 7v7 ,a development company that is certified under title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq474 7vi7 ,a ,community ,advantage ,small ,business ,lending ,company1 as defined in section #abj4aj of title #ac1 ,code of ,federal ,regulations1 or any successor regulation4 7vii7 ,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 #ajfgq7a774 7viii7 ,a junior or community college1 as defined in section #cab of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajeh74 7#c7 ,federally recognized area of economic distress ,the term federally recognized area of economic distress means-- 7,a7 a ,h,u,b,zone1 as that term is defined in section #ca7;b72 7,b7 an area that has been designated as-- 7i7 an empowerment zone or enterprise community 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 seq472 or 7,c7 any area for which a disaster declaration or determination described in subparagraph 7,a71 7,b71 7,c71 or 7,e7 of section #g7;b77#b7 has been made that has not terminated more than #b years before the date on which an eligible entity enters into a cooperative agreement with the ,administration under this section with respect to the area 7or later1 as determined by the ,administrator71 except that1 in the case of a major disaster described in subparagraph 7,a7 of section #g7;b77#b71 that period shall be #e years4 7#d7 ,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 meanings given those terms under section #g7m74 7#e7 ,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 startups or newly established small business concerns for a predetermined period or an open-ended period4 7#f7 ,individuals with a disability ,the term individuals with a disability means more than #a individual with a disability1 as defined in section #c of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abajb74 7#g7 ,rural area ,the term rural area has the meaning given the term in section #g7m77#aa74 7#h7 ,socially and economically disadvantaged individual ,the term socially and economically disadvantaged individual means a socially and economically disadvantaged individual within the meaning given that term in section #h7;d77#c77;,c74 7b7 ,establishment ,not later than #a year after the date of enactment of the ,strengthening ,place-based ,access1 ,resources1 and ,knowledge ,act1 the ,administrator shall develop and begin implementing a program 7to be known as the ,spark ,program7 to enter into cooperative agreements with eligible entities under this section4 7c7 ,authority 7#a7 ,in general ,the ,administrator may-- 7,a7 with respect to eligible entities that have submitted applications for such purpose1 enter into cooperative agreements to provide financial assistance to those eligible entities to conduct #e-year projects for the benefit of startup1 newly established1 or growing small business concerns1 which may include cooperatives and community land trusts2 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 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,b7 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,c7 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 one-to-one individual counseling1 as described in section #ba7;c77#c77;,a72 and 7,,ii7 a formal1 structured mentorship program2 7,d7 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,e7 involve working with underserved groups1 which include-- 7i7 women2 7ii7 socially and economically disadvantaged individuals2 7iii7 veterans or spouses of veterans2 7iv7 individuals with disabilities2 7v7 small business concerns located in rural areas1 including startup1 newly established1 or growing small business concerns located in rural areas2 7vi7 members of an ,indian ,tribe individually identified 7including parenthetically7 in the most recent list published pursuant to section #ajd of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #eaca72 7vii7 individuals who have completed a term of imprisonment in a ,federal1 ,state1 or local jail or prison2 or 7viii7 small business concerns1 if not less than #ej percent of the employees of the small business concern reside in a low- or moderate-income community2 7,f7 not impose or otherwise collect a fee or other compensation in connection with participation in the programs and services described in subparagraph 7,c77ii72 and 7,g7 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 agreement1 or a renewal of a cooperative agreement1 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 of cooperative agreements 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 ,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 may 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 for that suspension1 termination1 or failure and affords the eligible entity an opportunity for a hearing1 appeal1 or other administrative proceeding under chapter #e of title #e1 ,united ,states ,code4 7#e7 ,limitation on use of funds ,an eligible entity that has entered into a cooperative agreement under this section may not use any portion of the financial assistance provided under that cooperative agreement to directly provide capital to any participant in any project that is funded with that financial assistance4 7d7 ,criteria 7#a7 ,in general ,the ,administrator shall-- 7,a7 establish and evaluate 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 7ii7 whether the proposed project demonstrates a commitment1 and details a specific plan1 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 agencies1 including the ,minority ,business ,development ,agency of the ,department of ,commerce2 and 7,v7 for-profit organizations with an expertise in small business innovation2 7iii7 whether the proposed project will serve underserved groups described in subsection 7c77#b77;,e72 7iv7 whether the proposed project is a local1 place-based initiative that seeks to engage local communities and consumers2 and 7v7 whether the proposed project will provide or connect small business concerns with investment1 grant-making1 or procurement opportunities2 7,b7 make publicly available1 including on the website of the ,administration1 and state in each solicitation for applications for cooperative agreements under this section1 the selection criteria and ranking established under subparagraph 7,a72 and 7,c7 evaluate applicants for cooperative agreements under this section in accordance with the selection criteria and ranking established under subparagraph 7,a74 7#b7 ,contents ,the selection criteria established under paragraph 7#a77;,a7 shall consider-- 7,a7 the record of the applicable 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 section 7or1 if the eligible entity has been in operation for less than #c years1 for the most recent full year the eligible entity was in operation7-- 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 investments1 grants1 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 7,b7 the structure and goals of the applicable project2 7,c7 ties that the applicable eligible entity has to the business community2 7,d7 the resources available for the applicable project2 7,e7 the capabilities of the applicable project1 including coordination with local resource partners and local or national lending partners of the ,administration2 7,f7 the unique business and economic challenges faced by the community in which the applicable eligible entity is located and businesses in that community2 7,g7 the proposed budget and plan for use of funds2 and 7,h7 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 carried out with financial assistance provided 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 the amount of assistance from non-,federal sources obtained and expended by the eligible entity during the preceding year2 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 applicable project under paragraph 7#a72 and 7,b7 may terminate or not renew a cooperative agreement1 if-- 7i7 the ,administrator determines that the applicable eligible entity has failed to provide information required to be provided 7including information provided for the purpose of the annual report by the ,administrator under subsection 7l772 or 7ii7 the information provided by the applicable eligible entity is inadequate4 7#c7 ,study and report ,not later than #b years after the date of enactment of the ,strengthening ,place-based ,access1 ,resources1 and ,knowledge ,act1 the ,administrator shall-- 7,a7 conduct a study to determine whether the program examination criteria under this subsection and the reporting requirements under subsection 7l7 should vary or include other metrics based on the type and location of a project2 and 7,b7 submit to ,congress a report detailing the results of the study conducted under subparagraph 7,a74 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 ,spark ,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 with financial assistance provided 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 less than #ejj1jjj during each year4 7i7 ,contract authority 7#a7 ,in general ,an eligible entity that has entered into a cooperative agreement under this section 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 ,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 7j7 ,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 that 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 except that a disclosure under this subparagraph shall be limited to the information necessary for that 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 7k7 ,publication of information ,the ,administrator shall-- 7#a7 publish information about the program carried out 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 program carried out under this section4 7l7 ,annual reporting ,not later than #a year after the date on which the ,administrator establishes the program under this section1 and annually 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 entered into under this section 7referred to in this subsection 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 appropriate1 including coordination with other private or public small business assistance programs4 7m7 ,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 #e4 ,spark ,financing ,program ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq471 as amended by section #d1 is amended by inserting after section #di the following3 #ej4 ,spark ,financing ,program 7a7 ,definitions ,in this section3 7#a7 ,covered entity ,the term covered entity means-- 7,a7 an eligible entity2 or 7,b7 solely for the purposes of making loans under subsection 7c77#c77;,a77ii71 another lender or organization determined appropriate by the ,administrator4 7#b7 ,covered small business concern ,the term covered small business concern means a small business concern that is-- 7,a7 owned by an individual that is a member of an underserved group described in section #di7;c77#b77;,e72 or 7,b7 located in a federally recognized area of economic distress4 7#c7 ,eligible entity2 federally recognized area of economic distress2 growing2 newly established2 startup ,the terms eligible entity1 federally recognized area of economic distress1 growing1 newly established1 and startup have the meanings given those terms in section #di7;a74 7b7 ,establishment of program ,not later than #a year after the date of enactment of the ,strengthening ,place-based ,access1 ,resources1 and ,knowledge ,act1 the ,administrator shall establish1 and thereafter the ,administrator shall carry out1 a grant and loan program 7to be known as the ,spark ,financing ,program71 under which1 in accordance with the requirements of this section1 the ,administrator shall provide financial assistance to covered entities1 which shall use that financial assistance to make grants or loans to covered small business concerns4 7c7 ,financial assistance to eligible entities 7#a7 ,in general ,the ,administrator shall provide financial assistance to covered entities under this section as follows3 7,a7 ,if the covered entity has entered into a cooperative agreement under section #di-- 7i7 the amount of financial assistance provided under this section shall be not more than #a1jjj1jjj per year2 and 7ii7 the entity-- 7,i7 shall receive financial assistance under this section at the same time that the covered entity receives financial assistance pursuant to that cooperative agreement under section #di2 and 7,,ii7 shall not be required to reapply for funding under this section on an annual basis4 7,b7 ,if the covered entity has not entered into a cooperative agreement under section #di-- 7i7 the amount of financial assistance provided under this section shall be not more than #ejj1jjj per year2 and 7ii7 the covered entity shall reapply for financial assistance under this section on an annual basis4 7#b7 ,application 7,a7 ,in general ,a covered entity seeking financial assistance under this section-- 7i7 may1 if the covered entity seeks to enter into or renew a cooperative agreement under section #di1 seek that financial assistance in an application submitted by the covered entity with respect to entering into or renewing that cooperative agreement1 as applicable2 or 7ii7 if the covered entity does not seek to enter into a1 or is not seeking to renew an existing1 cooperative agreement under section #di1 shall submit to the ,administrator an application seeking that financial assistance4 7,b7 ,contents ,with respect to an application seeking financial assistance under this section1 whether or not submitted as part of an application under section #di-- 7i7 the application shall detail the proposed use of the financial assistance1 as provided under paragraph 7#c72 and 7ii7 the ,administrator shall evaluate the application using the criteria described in paragraphs 7#a7 and 7#b7 of section #di7;d71 except that1 for purposes of this clause1 any reference in such paragraph 7#a7 or 7#b7 to a cooperative agreement under section #di shall be deemed to be a reference to financial assistance provided under this section4 7#c7 ,uses of financial assistance 7,a7 ,in general 7i7 ,grants 7,i7 ,in general ,subject to clause 7ii71 an eligible entity to which financial assistance is provided under this section may use that financial assistance to make grants to covered small business concerns to carry out projects that are directed at the objectives described in section #eja7;d7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie7;d774 7,,ii7 ,limitation ,a covered small business concern may not receive more than #bj1jjj1 in total1 in grants made under subclause 7,i74 7ii7 ,loans ,an eligible entity described in any of clauses 7ii7 through 7vi7 of section #di7;a77#b77;,b71 or another lender or organization determined appropriate by the ,administrator1 may use financial assistance provided under this section to make a loan to a covered small business concern with a significantly lower interest rate than is typical1 or with a required equity contribution that is lower than is typical1 in order to-- 7,i7 reduce the number of loan applications that are denied because of insufficient collateral2 7,,ii7 decrease the cost of financing for covered small business concerns2 7,,iii7 increase the number of covered small business concerns that qualify for financing1 in light of-- 7aa7 the difficulties faced by covered small business concerns in accessing conventional financing2 and 7bb7 the historical exclusion of covered small business concerns from credit markets2 7,,iv7 bring more lenders into areas that suffer from under-investment2 and 7,v7 bridge public and private financing programs to provide covered small business concerns with a continuum of support4 7,b7 ,no fee or compensation required ,a covered small business concern that receives a grant or loan made under subparagraph 7,a7 shall not be required to pay a fee1 or to otherwise pay any compensation1 to the applicable covered entity with respect to that grant or loan4 7#d7 ,verification ,a covered entity that makes a grant or loan to a covered small business concern using financial assistance provided to the covered entity under this section shall verify the legitimacy of that covered small business concern1 which may include collecting the following information from the covered small business concern3 7,a7 ,a description of the history of the covered small business concern and the nature of the business of the covered small business concern4 7,b7 ,the amount and purpose of the grant or loan4 7,c7 ,the most recent financial statements of the covered small business concern4 7,d7 ,past financial statements or tax returns of the covered small business concern1 as determined appropriate by the ,administrator4 7,e7 ,the tax verification described in section #abj4aia of title #ac1 ,code of ,federal ,regulations1 or any successor regulation4 7,f7 ,a business plan provided by the small business concern4 7,g7 ,any other material determined appropriate by the ,administrator4 7d7 ,program examination 7#a7 ,in general ,the ,administrator shall-- 7,a7 develop and implement an examination of the grants and loans made with financial assistance provided under this section1 under which each covered entity to which financial assistance is provided under this section shall provide to the ,administrator-- 7i7 documentation establishing metrics to measure success on the use of that financial assistance and detailing whether that use satisfied those metrics2 7ii7 if the covered entity has made loans with financial assistance provided under this section1 default rates for those loans2 7iii7 if the covered entity has made grants with financial assistance provided under this section1 failure rates of the covered small business concerns to which those grants were made2 and 7iv7 any other documentation that the ,administrator may require2 and 7,b7 analyze the results of the examination conducted under subparagraph 7,a74 7#b7 ,use of examination ,in determining whether a covered entity described in subsection 7c77#a77;,a7 shall continue to receive financial assistance under this section concurrent with the provision of financial assistance pursuant to a cooperative agreement under section #di1 or whether to approve a re-application for financial assistance provided under this section that is submitted by a covered entity described in subsection 7c77#a77;,b77ii71 the ,administrator-- 7,a7 shall consider the results of the most recent examination conducted under paragraph 7#a72 and 7,b7 may withdraw financial assistance provided under this section1 or reject such a re-application1 if-- 7i7 the ,administrator determines that the applicable covered entity has failed to provide information required to be provided 7including information provided for the purpose of the annual report by the ,administrator under subsection 7h772 or 7ii7 the information provided by the applicable covered entity is inadequate4 7#c7 ,study and report ,not later than #b years after the date of enactment of the ,strengthening ,place-based ,access1 ,resources1 and ,knowledge ,act1 the ,administrator shall-- 7,a7 conduct a study to determine whether the program examination criteria under this subsection and the reporting requirements under subsection 7h7 should vary or include other metrics based on the type and location of a project2 and 7,b7 submit to ,congress a report detailing the results of the study conducted under subparagraph 7,a74 7e7 ,training and technical assistance ,the ,administrator-- 7#a7 shall provide in-person or online training and technical assistance to each covered entity to which financial assistance is provided under this section at the beginning of the participation of the covered entity in the program established under this section in order to build the capacity of the covered 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 7f7 ,coordination ,in making a grant or loan with financial assistance provided under this section1 a covered 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 7g7 ,publication of information ,the ,administrator shall-- 7#a7 publish information about the program carried out 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 program carried out under this section4 7h7 ,annual reporting ,not later than #a year after the date on which the ,administrator establishes the program under this section1 and annually thereafter1 the ,administrator shall submit to ,congress a report on the activities under the program1 including-- 7#a7 the number of grants and loans made using the financial assistance provided under this section2 7#b7 the use of the funds from grants and loans described in subparagraph 7,a72 7#c7 the amount of financial assistance provided under this section that was expended for each job created or retained through the expenditure of that financial assistance2 7#d7 the number of startup1 newly established1 and growing covered small business concerns to which grants and loans have been made using financial assistance provided under this section 7referred to in this subsection as participants71 including a breakdown of the owners of the participants by race1 gender1 veteran status1 and urban versus rural location2 7#e7 the retention rate for participants2 7#f7 the total and median amount of capital accessed by participants1 including the type of capital accessed2 7#g7 the total and median number of employees of participants2 7#h7 the number and median wage of jobs created by participants2 7#i7 the number of jobs sustained by participants2 and 7#aj7 information regarding such other metrics as the ,administrator determines appropriate1 including coordination with other private or public small business assistance programs4 7i7 ,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 #f4 ,regulations ,not later than #a year after the date of enactment of this ,act1 the ,administrator of the ,small ,business ,administration shall promulgate regulations to carry out sections #di and #ej of the ,small ,business ,act1 as amended by this ,act1 which shall include procedures to-- 7#a7 verify the proper use of financial assistance provided under each such section1 including a grant or loan made under such section #ej with financial assistance provided under that section2 and 7#b7 establish clawback provisions for any instance of fraud committed with respect to any financial assistance1 or any grant or loan1 described in paragraph 7#a7 of this section4