,,ii #aai? ,,congress #b;d ,session ,s4 #chgf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #ab1 #bjbf,mr4 ,m>key 7= himself1 ,ms4 ,hirono1 & ,mr4 ,book]7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ,a ,,bill ,to am5d ! ,small ,bus9ess ,act to spur entrepr5eurial ecosy/ems 9 und]s]v$ communities1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/r5g!n+ ,place-bas$ ,access1 ,res\rces1 & ,k ,act or ! ,,sp>k ,act4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,/udies h f\nd t incubators1 accel]ators1 & o!r simil> models are effective at increas+ rev5ues1 ! numb] ( employees1 & ! likelihood t ! bus9ess v5ture w be successful = p>ticipants4 7#b7 ,accord+ to ! #bjbc ,report on ,/>tup ,firms ,own$ by ,p ( ,color3 ,f9d+s f ! #bjbb ,small ,bus9ess ,cr$it ,survey-- 7,a7 />tups own$ by racial m9orities are m ?an twice z likely to be d5i$ = f9anc+ f l5d]s ?an non-m9ority-own$ />tups2 & 7,b7 mission-ori5t$ f9ancial in/itutions & community-bas$ l5d]s1 includ+ m9ority depository in/itutions & community developm5t f9ancial in/itutions1 are critical 9 help+ m9ority-own$ bus9esses access capital4 7#c7 ,accord+ to ! ,kauffman ,f\ndation-- 7,a7 m9ority-own$ & wom5-own$ bus9esses are half z likely to h work]s ?an non-m9ority-own$ & m5-own$ bus9esses2 & 7,b7 if m9orities />t$ bus9esses at ! same rate z non-m9orities1 approximately #i1ejj1jjj jobs w\ld be add$ to ! economy ( ! ,unit$ ,/ates4 7#d7 ,accord+ to ! ,c5t] = ,rural ,innovation-- 7,a7 less ?an #a p]c5t ( all v5ture capital fund+ goes to bus9esses locat$ 9 rural areas2 7,b7 rural entrepr5eur%ip rates h fall5 f #bj p]c5t 9 ! #aihjs to j m ?an #ab p]c5t 9 ! #bjajs2 & 7,c7 f9ancial b>ri]s 9 rural areas are especially prom95t = m9ority populations4 7#e7 ,accord+ to ,pitch,book1 only #b p]c5t ( all v5ture capital fund+ goes to bus9esses ) wom5 f\nd]s4 7#f7 ,accord+ to ,crun*base1 less ?an #c p]c5t ( all v5ture capital fund+ goes to bus9esses ) ,black & ,hispanic f\nd]s4 #c4 ,purposes ,! purposes ( ! ,sp>k ,program e/abli%$ "u section #di ( ! ,small ,bus9ess ,act1 z am5d$ by ?is ,act1 are to-- 7#a7 spur economic gr[? 9 und]s]v$ communities by creat+ good pay+ jobs & increas+ access to capital2 7#b7 increase prospects = success = small bus9ess conc]ns 9 und]s]v$ communities1 :i* (t5 suff] f high] bus9ess failure rates ?an ! national av]age2 7#c7 create a pipel9e = individuals 9 und]s]v$ & rural m>kets into small bus9ess own]%ip2 7#d7 close ! gaps t und]s]v$ small bus9ess conc]ns (t5 h 9 t]ms ( rev5ue & numb] ( employees1 :i* repres5t lo/ opportunity = ! economy ( ! ,unit$ ,/ates2 7#e7 enc\rage collaboration betwe5 ! ,small ,bus9ess ,adm9i/ration & organizations t s]ve l[-income1 m9ority1 & rural communities2 & 7#f7 gr[ exi/+ incubators & accel]ators t are focus$ on emp[]+ und]s]v$ communities & entrepr5eurs4 #d4 ,sp>k ,program ,! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 is am5d$-- 7#a7 by r$esignat+ section #di 7#ae ,u4,s4,c4 #fca note7 z section #ea2 & 7#b7 by ins]t+ aft] section #dh 7#ae ,u4,s4,c4 #fegu7 ! foll[+3 #di4 ,sp>k ,program 7a7 ,def9itions ,9 ?is section3 7#a7 ,accel]ator ,! t]m accel]ator means an organization-- 7,a7 t-- 7i7 works ) a />tup or gr[+ small bus9ess conc]n = a pr$et]m9$ p]iod2 7ii7 provides m5tor%ip & in/ruction to scale bus9esses2 & 7iii7 increases ! inve/m5t read9ess ( small bus9ess conc]ns2 & 7,b7 t may-- 7i7 provide1 b is n exclusively design$ to provide1 se$ inve/m5t 9 ex*ange = a small am\nt ( equity2 & 7ii7 (f] />tup capital or ! opportunity to raise capital f outside inve/ors4 7#b7 ,eligible entity 7,a7 ,9 g5]al ,! t]m eligible entity means an organization op]at+1 or plann+ to op]ate-- 7i7 an accel]ator2 7ii7 an incubator2 or 7iii7 any o!r small bus9ess innovation-focus$ project1 z approv$ by ! ,adm9i/rator4 7,b7 ,inclusions ,! t]m eligible entity includes any ( ! foll[+1 if ! organization is z describ$ 9 subp>agraph 7,a73 7i7 ,an organization describ$ 9 section #eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7ii7 ,a community developm5t f9ancial in/itution1 z def9$ 9 section #ajc ( ! ,community ,developm5t ,bank+ & ,f9ancial ,in/itutions ,act ( #aiid 7#ab ,u4,s4,c4 #dgjb74 7iii7 ,a m9ority depository in/itution1 z def9$ 9 section #cjh7;b7 ( ! ,f9ancial ,in/itutions ,re=m1 ,recov]y1 & ,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4 #adfc note74 7iv7 ,a l5d] "u ! program e/abli%$ "u section #g7m74 7v7 ,a developm5t company t is c]tifi$ "u title ,v ( ! ,small ,bus9ess ,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4 #fie et seq474 7vi7 ,a ,community ,advantage ,small ,bus9ess ,l5d+ ,company1 z def9$ 9 section #abj4aj ( title #ac1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7vii7 ,an in/itution describ$ 9 any ( p>agraphs 7#a7 ?r\gh 7#g7 ( section #cga7;a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajfgq7a774 7viii7 ,a junior or community college1 z def9$ 9 section #cab ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajeh74 7#c7 ,f$]ally recogniz$ area ( economic di/ress ,! t]m f$]ally recogniz$ area ( economic di/ress means-- 7,a7 a ,h,u,b,zone1 z t t]m is def9$ 9 section #ca7;b72 7,b7 an area t has be5 designat$ z-- 7i7 an emp[]m5t zone or ent]prise community "u section #acia ( ! ,int]nal ,rev5ue ,code ( #aihf2 7ii7 a ,promise ,zone by ! ,secret>y ( ,h\s+ & ,urban ,developm5t2 or 7iii7 a l[-income neighborhood or mod]ate-income neighborhood = purposes ( ! ,community ,re9ve/m5t ,act ( #aigg 7#ab ,u4,s4,c4 #bija et seq472 or 7,c7 any area = :i* a disa/] decl>ation or det]m9ation describ$ 9 subp>agraph 7,a71 7,b71 7,c71 or 7,e7 ( section #g7;b77#b7 has be5 made t has n t]m9at$ m ?an #b ye>s be=e ! date on :i* an eligible entity ent]s into a coop]ative agreem5t ) ! ,adm9i/ration "u ?is section ) respect to ! area 7or lat]1 z det]m9$ by ! ,adm9i/rator71 except t1 9 ! case ( a major disa/] describ$ 9 subp>agraph 7,a7 ( section #g7;b77#b71 t p]iod %all be #e ye>s4 7#d7 ,gr[+2 newly e/abli%$2 />tup ,! t]ms gr[+1 newly e/abli%$1 & />tup1 ) respect to a small bus9ess conc]n1 mean gr[+1 newly e/abli%$1 & />tup1 respectively1 )9 ! mean+s giv5 ^? t]ms "u section #g7m74 7#e7 ,incubator ,! t]m incubator means an organization-- 7,a7 t-- 7i7 t5ds to "w ) />tup & newly e/abli%$ small bus9ess conc]ns2 & 7ii7 provides m5tor%ip to />tup & newly e/abli%$ small bus9ess conc]ns2 & 7,b7 t may-- 7i7 provide a co-work+ environm5t or a mon?-to-mon? lease program2 & 7ii7 "w ) />tups or newly e/abli%$ small bus9ess conc]ns = a pr$et]m9$ p]iod or an op5-end$ p]iod4 7#f7 ,individuals ) a disability ,! t]m individuals ) a disability means m ?an #a individual ) a disability1 z def9$ 9 section #c ( ! ,am]icans ) ,disabilities ,act ( #aiij 7#db ,u4,s4,c4 #abajb74 7#g7 ,rural area ,! t]m rural area has ! mean+ giv5 ! t]m 9 section #g7m77#aa74 7#h7 ,socially & economically disadvantag$ individual ,! t]m socially & economically disadvantag$ individual means a socially & economically disadvantag$ individual )9 ! mean+ giv5 t t]m 9 section #h7;d77#c77;,c74 7b7 ,e/abli%m5t ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,/r5g!n+ ,place-bas$ ,access1 ,res\rces1 & ,k ,act1 ! ,adm9i/rator %all develop & beg9 implem5t+ a program 7to be kn[n z ! ,sp>k ,program7 to ent] into coop]ative agreem5ts ) eligible entities "u ?is section4 7c7 ,au?ority 7#a7 ,9 g5]al ,! ,adm9i/rator may-- 7,a7 ) respect to eligible entities t h submitt$ applications = su* purpose1 ent] into coop]ative agreem5ts to provide f9ancial assi/ance to ^? eligible entities to conduct #e-ye> projects = ! b5efit ( />tup1 newly e/abli%$1 or gr[+ small bus9ess conc]ns1 :i* may include coop]atives & community l& tru/s2 & 7,b7 r5ew a coop]ative agreem5t ent]$ into "u ?is section = additional #c-ye> p]iods1 9 accordance ) p>agraph 7#c74 7#b7 ,project requirem5ts ,a project conduct$ "u a coop]ative agreem5t "u ?is section %all-- 7,a7 be c>ri$ out 9 su* locations z to provide maximum accessibility & b5efits to ! small bus9ess conc]ns t ! project is int5d$ to s]ve2 7,b7 h a full-"t /aff1 includ+ a full-"t director :o %all-- 7i7 h ! au?ority to make exp5ditures "u ! budget ( ! project2 & 7ii7 manage ! activities c>ri$ out "u ! project2 7,c7 include ! jo9t provision ( programs & s]vices by ! eligible entity & ! ,adm9i/ration1 :i*-- 7i7 %all be jo9tly develop$1 negotiat$1 & agre$ ^u1 ) full p>ticipation ( bo? p>ties1 pursuant to an execut$ coop]ative agreem5t betwe5 ! eligible entity & ! ,adm9i/ration2 & 7ii7 %all include-- 7,i7 "o-to-"o individual c\nsel+1 z describ$ 9 section #ba7;c77#c77;,a72 & 7,,ii7 a =mal1 /ructur$ m5tor%ip program2 7,d7 incorporate cont9u\s upgrades & modifications to ! s]vices & programs (f]$ "u ! project1 z ne$$ to meet ! *ang+ & evolv+ ne$s ( ! bus9ess community2 7,e7 involve work+ ) und]s]v$ gr\ps1 :i* include-- 7i7 wom52 7ii7 socially & economically disadvantag$ individuals2 7iii7 vet]ans or sp\ses ( vet]ans2 7iv7 individuals ) disabilities2 7v7 small bus9ess conc]ns locat$ 9 rural areas1 includ+ />tup1 newly e/abli%$1 or gr[+ small bus9ess conc]ns locat$ 9 rural areas2 7vi7 memb]s ( an ,indian ,tribe individually id5tifi$ 7includ+ p>5!tically7 9 ! mo/ rec5t li/ publi%$ pursuant to section #ajd ( ! ,f$]ally ,recogniz$ ,indian ,tribe ,li/ ,act ( #aiid 7#be ,u4,s4,c4 #eaca72 7vii7 individuals :o h complet$ a t]m ( imprisonm5t 9 a ,f$]al1 ,/ate1 or local jail or prison2 or 7viii7 small bus9ess conc]ns1 if n less ?an #ej p]c5t ( ! employees ( ! small bus9ess conc]n reside 9 a l[- or mod]ate-income community2 7,f7 n impose or o!rwise collect a fee or o!r comp5sation 9 connection ) p>ticipation 9 ! programs & s]vices describ$ 9 subp>agraph 7,c77ii72 & 7,g7 ensure t small bus9ess conc]ns p>ticipat+ 9 ! project h access1 includ+ ?r\gh res\rce p>tn]s1 to in=mation conc]n+ ,f$]al1 ,/ate1 & local regulations t affect small bus9ess conc]ns4 7#c7 ,cont9u$ fund+ 7,a7 ,9 g5]al ,an eligible entity t ent]s into an initial coop]ative agreem5t1 or a r5ewal ( a coop]ative agreem5t1 "u p>agraph 7#a7 may submit an application = a #c-ye> r5ewal ( ! coop]ative agreem5t at su* "t1 9 su* mann]1 & accompani$ by su* in=mation z ! ,adm9i/rator may e/abli%4 7,b7 ,application & approval crit]ia 7i7 ,crit]ia ,! ,adm9i/rator %all develop & publi% crit]ia = ! consid]ation & approval ( applications = r5ewals ( coop]ative agreem5ts by eligible entities "u ?is p>agraph1 :i* %all take into acc\nt ! /ructure & ! /at$ goals ( ! project4 7ii7 ,notification ,n lat] ?an #fj days aft] ! date ( ! deadl9e to submit applications = ea* fiscal ye>1 ! ,adm9i/rator %all approve or d5y any application "u ?is p>agraph & notify ! applicant = ea* su* application4 7,c7 ,priority ,9 allocat+ funds made available = coop]ative agreem5ts "u ?is section1 ! ,adm9i/rator %all give applications "u ?is p>agraph priority ov] fir/-"t applications = coop]ative agreem5ts "u p>agraph 7#a77;,a74 7#d7 ,scope ( au?ority 7,a7 ,subject to appropriations ,! au?ority ( ! ,adm9i/rator to ent] into coop]ative agreem5ts "u ?is section %all be 9 effect = ea* fiscal ye> only to ! ext5t & 9 ! am\nts z are provid$ 9 advance 9 appropriations ,acts4 7,b7 ,susp5sion1 t]m9ation1 & failure to r5ew or ext5d ,aft] ! ,adm9i/rator has ent]$ into a coop]ative agreem5t ) an eligible entity "u ?is section1 ! ,adm9i/rator may n susp5d1 t]m9ate1 or fail to r5ew or ext5d ! coop]ative agreem5t unless ! ,adm9i/rator provides ! eligible entity ) writt5 notification sett+ =? ! reasons = t susp5sion1 t]m9ation1 or failure & af=ds ! eligible entity an opportunity = a he>+1 appeal1 or o!r adm9i/rative proce$+ "u *apt] #e ( title #e1 ,unit$ ,/ates ,code4 7#e7 ,limitation on use ( funds ,an eligible entity t has ent]$ into a coop]ative agreem5t "u ?is section may n use any portion ( ! f9ancial assi/ance provid$ "u t coop]ative agreem5t to directly provide capital to any p>ticipant 9 any project t is fund$ ) t f9ancial assi/ance4 7d7 ,crit]ia 7#a7 ,9 g5]al ,! ,adm9i/rator %all-- 7,a7 e/abli% & evaluate 9 t]ms ( relative importance ! crit]ia ! ,adm9i/rator %all use 9 aw>d+ coop]ative agreem5ts "u ?is section1 :i* %all include-- 7i7 :e!r ! propos$ project w be locat$ 9-- 7,i7 a f$]ally recogniz$ area ( economic di/ress2 7,,ii7 a rural area2 or 7,,iii7 an area lack+ suffici5t entrepr5eurial developm5t res\rces1 z det]m9$ by ! ,adm9i/rator2 7ii7 :e!r ! propos$ project demon/rates a commitm5t1 & details a specific plan1 to p>tn] ) core /akehold]s work+ ) small bus9ess conc]ns 9 ! relevant area1 includ+-- 7,i7 inve/m5t & l5d+ organizations2 7,,ii7 nongov]nm5tal organizations2 7,,iii7 programs ( ,/ate & local gov]nm5ts t are conc]n$ ) aid+ small bus9ess conc]ns2 7,,iv7 ,f$]al ag5cies1 includ+ ! ,m9ority ,bus9ess ,developm5t ,ag5cy ( ! ,dep>tm5t ( ,comm]ce2 & 7,v7 =-pr(it organizations ) an exp]tise 9 small bus9ess innovation2 7iii7 :e!r ! propos$ project w s]ve und]s]v$ gr\ps describ$ 9 subsection 7c77#b77;,e72 7iv7 :e!r ! propos$ project is a local1 place-bas$ initiative t seeks to engage local communities & consum]s2 & 7v7 :e!r ! propos$ project w provide or connect small bus9ess conc]ns ) inve/m5t1 grant-mak+1 or procurem5t opportunities2 7,b7 make publicly available1 includ+ on ! website ( ! ,adm9i/ration1 & /ate 9 ea* solicitation = applications = coop]ative agreem5ts "u ?is section1 ! selection crit]ia & rank+ e/abli%$ "u subp>agraph 7,a72 & 7,c7 evaluate applicants = coop]ative agreem5ts "u ?is section 9 accordance ) ! selection crit]ia & rank+ e/abli%$ "u subp>agraph 7,a74 7#b7 ,cont5ts ,! selection crit]ia e/abli%$ "u p>agraph 7#a77;,a7 %all consid]-- 7,a7 ! record ( ! applicable eligible entity 9 assi/+ gr[+1 newly e/abli%$1 & />tup small bus9ess conc]ns1 includ+1 = ea* ( ! #c full ye>s be=e ! date on :i* ! eligible entity applies = a coop]ative agreem5t "u ?is section 7or1 if ! eligible entity has be5 9 op]ation = less ?an #c ye>s1 = ! mo/ rec5t full ye> ! eligible entity 0 9 op]ation7-- 7i7 ! numb] & ret5tion rate ( gr[+1 newly e/abli%$1 & />tup bus9ess conc]ns 9 ! program ( ! eligible entity2 7ii7 ! av]age p]iod ( p>ticipation by gr[+1 newly e/abli%$1 & />tup small bus9ess conc]ns 9 ! program ( ! eligible entity2 7iii7 ! total & m$ian capital rais$ by gr[+1 newly e/abli%$1 & />tup small bus9ess conc]ns p>ticipat+ 9 ! program ( ! eligible entity2 7iv7 ! numb] ( inve/m5ts1 grants1 or loans receiv$ by gr[+1 newly e/abli%$1 & />tup small bus9ess conc]ns p>ticipat+ 9 ! program ( ! eligible entity2 & 7v7 ! total & m$ian numb] ( employees ( gr[+1 newly e/abli%$1 & />tup small bus9ess conc]ns p>ticipat+ 9 ! program ( ! eligible entity2 7,b7 ! /ructure & goals ( ! applicable project2 7,c7 ties t ! applicable eligible entity has to ! bus9ess community2 7,d7 ! res\rces available = ! applicable project2 7,e7 ! capabilities ( ! applicable project1 includ+ coord9ation ) local res\rce p>tn]s & local or national l5d+ p>tn]s ( ! ,adm9i/ration2 7,f7 ! unique bus9ess & economic *all5ges fac$ by ! community 9 :i* ! applicable eligible entity is locat$ & bus9esses 9 t community2 7,g7 ! propos$ budget & plan = use ( funds2 & 7,h7 any o!r crit]ia det]m9$ appropriate by ! ,adm9i/rator4 7e7 ,program exam9ation 7#a7 ,9 g5]al ,! ,adm9i/rator %all-- 7,a7 develop & implem5t an annual programmatic & f9ancial exam9ation ( ea* project c>ri$ out ) f9ancial assi/ance provid$ "u ?is section1 "u :i* ea* eligible entity ent]+ into a coop]ative agreem5t "u ?is section %all provide to ! ,adm9i/rator-- 7i7 an itemiz$ co/ breakd[n ( actual exp5ditures = co/s incurr$ dur+ ! prec$+ ye>2 & 7ii7 docum5tation reg>d+ ! am\nt ( assi/ance f non-,f$]al s\rces obta9$ & exp5d$ by ! eligible entity dur+ ! prec$+ ye>2 & 7,b7 analyze ! results ( ea* exam9ation conduct$ "u subp>agraph 7,a7 &1 bas$ on t analysis1 make a det]m9ation reg>d+ ! programmatic & f9ancial viability ( ea* eligible entity4 7#b7 ,conditions = cont9u$ fund+ ,9 det]m9+ :e!r to cont9ue or r5ew a coop]ative agreem5t "u ?is section1 ! ,adm9i/rator-- 7,a7 %all consid] ! results ( ! mo/ rec5t exam9ation ( ! applicable project "u p>agraph 7#a72 & 7,b7 may t]m9ate or n r5ew a coop]ative agreem5t1 if-- 7i7 ! ,adm9i/rator det]m9es t ! applicable eligible entity has fail$ to provide in=mation requir$ to be provid$ 7includ+ in=mation provid$ = ! purpose ( ! annual report by ! ,adm9i/rator "u subsection 7l772 or 7ii7 ! in=mation provid$ by ! applicable eligible entity is inadequate4 7#c7 ,/udy & report ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ! ,/r5g!n+ ,place-bas$ ,access1 ,res\rces1 & ,k ,act1 ! ,adm9i/rator %all-- 7,a7 conduct a /udy to det]m9e :e!r ! program exam9ation crit]ia "u ?is subsection & ! report+ requirem5ts "u subsection 7l7 %\ld v>y or include o!r metrics bas$ on ! type & location ( a project2 & 7,b7 submit to ,congress a report detail+ ! results ( ! /udy conduct$ "u subp>agraph 7,a74 7f7 ,tra9+ & te*nical assi/ance ,! ,adm9i/rator-- 7#a7 %all provide 9-p]son or onl9e tra9+ & te*nical assi/ance to ea* eligible entity ent]+ into a coop]ative agreem5t "u ?is section at ! beg9n+ ( ! p>ticipation ( ! eligible entity 9 ! ,sp>k ,program 9 ord] to build ! capacity ( ! eligible entity & ensure compliance ) proc$ures e/abli%$ by ! ,adm9i/rator2 7#b7 %all ensure t ! tra9+ & te*nical assi/ance describ$ 9 p>agraph 7#a7 is provid$ at no co/ or at a l[ co/2 & 7#c7 may ent] into a contract to provide ! tra9+ or te*nical assi/ance describ$ 9 p>agraph 7#a7 ) #a or m organizations ) exp]tise 9 ! entrepr5eurial developm5t programs ( ! ,adm9i/ration1 innovation1 & entrepr5eurial developm5t4 7g7 ,coord9ation ,9 c>ry+ out a project ) f9ancial assi/ance provid$ "u ?is section1 an eligible entity may coord9ate )-- 7#a7 res\rce & l5d+ p>tn]s ( ! ,adm9i/ration2 7#b7 programs ( ,/ate & local gov]nm5ts t are conc]n$ ) aid+ small bus9ess conc]ns2 & 7#c7 o!r ,f$]al ag5cies1 includ+ to provide s]vices to & assi/ small bus9ess conc]ns 9 p>ticipat+ 9 ! ,,sbir & ,,/tr programs1 z def9$ 9 section #i7;e74 7h7 ,fund+ limit ,! am\nt ( f9ancial assi/ance provid$ to an eligible entity "u a coop]ative agreem5t ent]$ into "u ?is section %all be n less ?an #ejj1jjj dur+ ea* ye>4 7i7 ,contract au?ority 7#a7 ,9 g5]al ,an eligible entity t has ent]$ into a coop]ative agreem5t "u ?is section may ent] into a contract ) a ,f$]al dep>tm5t or ag5cy to provide specific assi/ance to />tup1 newly e/abli%$1 or gr[+ small bus9ess conc]ns4 7#b7 ,p]=mance ,p]=mance ( a contract ent]$ into "u p>agraph 7#a7 may n h9d] ! eligible entity 9 c>ry+ out ! t]ms ( ! coop]ative agreem5t "u ?is section4 7#c7 ,additional provision ,not)/&+ any o!r provision ( law1 a contract = assi/ance "u p>agraph 7#a7 %all n be appli$ to any ,f$]al dep>tm5t or ag5cy's small bus9ess1 woman-own$ bus9ess1 or socially & economically disadvantag$ bus9ess contract+ goal "u section #ae7;g74 7j7 ,privacy requirem5ts 7#a7 ,9 g5]al ,an eligible entity may n disclose ! "n1 address1 or telephone numb] ( any individual or small bus9ess conc]n receiv+ assi/ance "u ?is section )\t ! cons5t ( t individual or small bus9ess conc]n1 unless-- 7,a7 ! ,adm9i/rator is ord]$ to make su* a disclosure by a c\rt 9 any civil or crim9al en=cem5t action initiat$ by a ,f$]al or ,/ate ag5cy2 or 7,b7 ! ,adm9i/rator consid]s su* a disclosure to be necess>y = ! purpose ( conduct+ a f9ancial audit ( an eligible entity1 except t a disclosure "u ?is subp>agraph %all be limit$ to ! in=mation necess>y = t audit4 7#b7 ,adm9i/ration use ( in=mation ,?is subsection %all n-- 7,a7 re/rict ,adm9i/ration access to program activity data2 or 7,b7 prev5t ! ,adm9i/ration f us+ cli5t in=mation 7o!r ?an ! in=mation describ$ 9 subp>agraph 7,a77 to conduct cli5t surveys4 7#c7 ,regulations ,! ,adm9i/rator %all issue regulations to e/abli% /&>ds = requir+ disclosures dur+ a f9ancial audit "u p>agraph 7#a77;,b74 7k7 ,publication ( in=mation ,! ,adm9i/rator %all-- 7#a7 publi% in=mation ab\t ! program c>ri$ out "u ?is section onl9e1 includ+-- 7,a7 on ! website ( ! ,adm9i/ration2 & 7,b7 on ! social m$ia ( ! ,adm9i/ration2 & 7#b7 reque/ t ! res\rce & l5d+ p>tn]s ( ! ,adm9i/ration & ! di/rict (fices ( ! ,adm9i/ration publicize ! program c>ri$ out "u ?is section4 7l7 ,annual report+ ,n lat] ?an #a ye> aft] ! date on :i* ! ,adm9i/rator e/abli%es ! program "u ?is section1 & annually !reaft]1 ! ,adm9i/rator %all submit to ,congress a report on ! activities "u ! program1 includ+-- 7#a7 ! numb] ( />tup1 newly e/abli%$1 & gr[+ small bus9ess conc]ns p>ticipat+ 9 ! project c>ri$ out by ea* eligible entity "u a coop]ative agreem5t ent]$ into "u ?is section 7ref]r$ to 9 ?is subsection z p>ticipants71 includ+ a breakd[n ( ! own]s ( ! p>ticipants by race1 g5d]1 vet]an /atus1 & urban v]sus rural location2 7#b7 ! ret5tion rate = p>ticipants2 7#c7 ! total & m$ian am\nt ( capital access$ by p>ticipants1 includ+ ! type ( capital access$2 7#d7 ! total & m$ian numb] ( employees ( p>ticipants2 7#e7 ! numb] & m$ian wage ( jobs creat$ by p>ticipants2 7#f7 ! numb] ( jobs su/a9$ by p>ticipants2 & 7#g7 in=mation reg>d+ su* o!r metrics z ! ,adm9i/rator det]m9es appropriate1 includ+ coord9ation ) o!r private or public small bus9ess assi/ance programs4 7m7 ,fund+ 7#a7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ su* sums z may be necess>y to c>ry out ?is section4 7#b7 ,adm9i/rative exp5ses ,( ! am\nt made available to c>ry out ?is section = any fiscal ye>1 n m ?an #aj p]c5t may be us$ by ! ,adm9i/rator = adm9i/rative exp5ses4 4 #e4 ,sp>k ,f9anc+ ,program ,! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq471 z am5d$ by section #d1 is am5d$ by ins]t+ aft] section #di ! foll[+3 #ej4 ,sp>k ,f9anc+ ,program 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ entity ,! t]m cov]$ entity means-- 7,a7 an eligible entity2 or 7,b7 solely = ! purposes ( mak+ loans "u subsection 7c77#c77;,a77ii71 ano!r l5d] or organization det]m9$ appropriate by ! ,adm9i/rator4 7#b7 ,cov]$ small bus9ess conc]n ,! t]m cov]$ small bus9ess conc]n means a small bus9ess conc]n t is-- 7,a7 own$ by an individual t is a memb] ( an und]s]v$ gr\p describ$ 9 section #di7;c77#b77;,e72 or 7,b7 locat$ 9 a f$]ally recogniz$ area ( economic di/ress4 7#c7 ,eligible entity2 f$]ally recogniz$ area ( economic di/ress2 gr[+2 newly e/abli%$2 />tup ,! t]ms eligible entity1 f$]ally recogniz$ area ( economic di/ress1 gr[+1 newly e/abli%$1 & />tup h ! mean+s giv5 ^? t]ms 9 section #di7;a74 7b7 ,e/abli%m5t ( program ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,/r5g!n+ ,place-bas$ ,access1 ,res\rces1 & ,k ,act1 ! ,adm9i/rator %all e/abli%1 & !reaft] ! ,adm9i/rator %all c>ry out1 a grant & loan program 7to be kn[n z ! ,sp>k ,f9anc+ ,program71 "u :i*1 9 accordance ) ! requirem5ts ( ?is section1 ! ,adm9i/rator %all provide f9ancial assi/ance to cov]$ entities1 :i* %all use t f9ancial assi/ance to make grants or loans to cov]$ small bus9ess conc]ns4 7c7 ,f9ancial assi/ance to eligible entities 7#a7 ,9 g5]al ,! ,adm9i/rator %all provide f9ancial assi/ance to cov]$ entities "u ?is section z foll[s3 7,a7 ,if ! cov]$ entity has ent]$ into a coop]ative agreem5t "u section #di-- 7i7 ! am\nt ( f9ancial assi/ance provid$ "u ?is section %all be n m ?an #a1jjj1jjj p] ye>2 & 7ii7 ! entity-- 7,i7 %all receive f9ancial assi/ance "u ?is section at ! same "t t ! cov]$ entity receives f9ancial assi/ance pursuant to t coop]ative agreem5t "u section #di2 & 7,,ii7 %all n be requir$ to reapply = fund+ "u ?is section on an annual basis4 7,b7 ,if ! cov]$ entity has n ent]$ into a coop]ative agreem5t "u section #di-- 7i7 ! am\nt ( f9ancial assi/ance provid$ "u ?is section %all be n m ?an #ejj1jjj p] ye>2 & 7ii7 ! cov]$ entity %all reapply = f9ancial assi/ance "u ?is section on an annual basis4 7#b7 ,application 7,a7 ,9 g5]al ,a cov]$ entity seek+ f9ancial assi/ance "u ?is section-- 7i7 may1 if ! cov]$ entity seeks to ent] into or r5ew a coop]ative agreem5t "u section #di1 seek t f9ancial assi/ance 9 an application submitt$ by ! cov]$ entity ) respect to ent]+ into or r5ew+ t coop]ative agreem5t1 z applicable2 or 7ii7 if ! cov]$ entity does n seek to ent] into a1 or is n seek+ to r5ew an exi/+1 coop]ative agreem5t "u section #di1 %all submit to ! ,adm9i/rator an application seek+ t f9ancial assi/ance4 7,b7 ,cont5ts ,) respect to an application seek+ f9ancial assi/ance "u ?is section1 :e!r or n submitt$ z "p ( an application "u section #di-- 7i7 ! application %all detail ! propos$ use ( ! f9ancial assi/ance1 z provid$ "u p>agraph 7#c72 & 7ii7 ! ,adm9i/rator %all evaluate ! application us+ ! crit]ia describ$ 9 p>agraphs 7#a7 & 7#b7 ( section #di7;d71 except t1 = purposes ( ?is clause1 any ref]5ce 9 su* p>agraph 7#a7 or 7#b7 to a coop]ative agreem5t "u section #di %all be deem$ to be a ref]5ce to f9ancial assi/ance provid$ "u ?is section4 7#c7 ,uses ( f9ancial assi/ance 7,a7 ,9 g5]al 7i7 ,grants 7,i7 ,9 g5]al ,subject to clause 7ii71 an eligible entity to :i* f9ancial assi/ance is provid$ "u ?is section may use t f9ancial assi/ance to make grants to cov]$ small bus9ess conc]ns to c>ry out projects t are direct$ at ! objectives describ$ 9 section #eja7;d7 ( ! ,small ,bus9ess ,inve/m5t ,act ( #aieh 7#ae ,u4,s4,c4 #fie7;d774 7,,ii7 ,limitation ,a cov]$ small bus9ess conc]n may n receive m ?an #bj1jjj1 9 total1 9 grants made "u subclause 7,i74 7ii7 ,loans ,an eligible entity describ$ 9 any ( clauses 7ii7 ?r\gh 7vi7 ( section #di7;a77#b77;,b71 or ano!r l5d] or organization det]m9$ appropriate by ! ,adm9i/rator1 may use f9ancial assi/ance provid$ "u ?is section to make a loan to a cov]$ small bus9ess conc]n ) a significantly l[] int]e/ rate ?an is typical1 or ) a requir$ equity contribution t is l[] ?an is typical1 9 ord] to-- 7,i7 r$uce ! numb] ( loan applications t are d5i$ because ( insuffici5t collat]al2 7,,ii7 decrease ! co/ ( f9anc+ = cov]$ small bus9ess conc]ns2 7,,iii7 increase ! numb] ( cov]$ small bus9ess conc]ns t qualify = f9anc+1 9 light (-- 7aa7 ! difficulties fac$ by cov]$ small bus9ess conc]ns 9 access+ conv5tional f9anc+2 & 7bb7 ! hi/orical exclusion ( cov]$ small bus9ess conc]ns f cr$it m>kets2 7,,iv7 br+ m l5d]s into areas t suff] f "u-inve/m5t2 & 7,v7 bridge public & private f9anc+ programs to provide cov]$ small bus9ess conc]ns ) a cont9uum ( support4 7,b7 ,no fee or comp5sation requir$ ,a cov]$ small bus9ess conc]n t receives a grant or loan made "u subp>agraph 7,a7 %all n be requir$ to pay a fee1 or to o!rwise pay any comp5sation1 to ! applicable cov]$ entity ) respect to t grant or loan4 7#d7 ,v]ification ,a cov]$ entity t makes a grant or loan to a cov]$ small bus9ess conc]n us+ f9ancial assi/ance provid$ to ! cov]$ entity "u ?is section %all v]ify ! legitimacy ( t cov]$ small bus9ess conc]n1 :i* may include collect+ ! foll[+ in=mation f ! cov]$ small bus9ess conc]n3 7,a7 ,a description ( ! hi/ory ( ! cov]$ small bus9ess conc]n & ! nature ( ! bus9ess ( ! cov]$ small bus9ess conc]n4 7,b7 ,! am\nt & purpose ( ! grant or loan4 7,c7 ,! mo/ rec5t f9ancial /atem5ts ( ! cov]$ small bus9ess conc]n4 7,d7 ,pa/ f9ancial /atem5ts or tax returns ( ! cov]$ small bus9ess conc]n1 z det]m9$ appropriate by ! ,adm9i/rator4 7,e7 ,! tax v]ification describ$ 9 section #abj4aia ( title #ac1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7,f7 ,a bus9ess plan provid$ by ! small bus9ess conc]n4 7,g7 ,any o!r mat]ial det]m9$ appropriate by ! ,adm9i/rator4 7d7 ,program exam9ation 7#a7 ,9 g5]al ,! ,adm9i/rator %all-- 7,a7 develop & implem5t an exam9ation ( ! grants & loans made ) f9ancial assi/ance provid$ "u ?is section1 "u :i* ea* cov]$ entity to :i* f9ancial assi/ance is provid$ "u ?is section %all provide to ! ,adm9i/rator-- 7i7 docum5tation e/abli%+ metrics to measure success on ! use ( t f9ancial assi/ance & detail+ :e!r t use satisfi$ ^? metrics2 7ii7 if ! cov]$ entity has made loans ) f9ancial assi/ance provid$ "u ?is section1 default rates = ^? loans2 7iii7 if ! cov]$ entity has made grants ) f9ancial assi/ance provid$ "u ?is section1 failure rates ( ! cov]$ small bus9ess conc]ns to :i* ^? grants 7 made2 & 7iv7 any o!r docum5tation t ! ,adm9i/rator may require2 & 7,b7 analyze ! results ( ! exam9ation conduct$ "u subp>agraph 7,a74 7#b7 ,use ( exam9ation ,9 det]m9+ :e!r a cov]$ entity describ$ 9 subsection 7c77#a77;,a7 %all cont9ue to receive f9ancial assi/ance "u ?is section concurr5t ) ! provision ( f9ancial assi/ance pursuant to a coop]ative agreem5t "u section #di1 or :e!r to approve a re-application = f9ancial assi/ance provid$ "u ?is section t is submitt$ by a cov]$ entity describ$ 9 subsection 7c77#a77;,b77ii71 ! ,adm9i/rator-- 7,a7 %all consid] ! results ( ! mo/ rec5t exam9ation conduct$ "u p>agraph 7#a72 & 7,b7 may )draw f9ancial assi/ance provid$ "u ?is section1 or reject su* a re-application1 if-- 7i7 ! ,adm9i/rator det]m9es t ! applicable cov]$ entity has fail$ to provide in=mation requir$ to be provid$ 7includ+ in=mation provid$ = ! purpose ( ! annual report by ! ,adm9i/rator "u subsection 7h772 or 7ii7 ! in=mation provid$ by ! applicable cov]$ entity is inadequate4 7#c7 ,/udy & report ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ! ,/r5g!n+ ,place-bas$ ,access1 ,res\rces1 & ,k ,act1 ! ,adm9i/rator %all-- 7,a7 conduct a /udy to det]m9e :e!r ! program exam9ation crit]ia "u ?is subsection & ! report+ requirem5ts "u subsection 7h7 %\ld v>y or include o!r metrics bas$ on ! type & location ( a project2 & 7,b7 submit to ,congress a report detail+ ! results ( ! /udy conduct$ "u subp>agraph 7,a74 7e7 ,tra9+ & te*nical assi/ance ,! ,adm9i/rator-- 7#a7 %all provide 9-p]son or onl9e tra9+ & te*nical assi/ance to ea* cov]$ entity to :i* f9ancial assi/ance is provid$ "u ?is section at ! beg9n+ ( ! p>ticipation ( ! cov]$ entity 9 ! program e/abli%$ "u ?is section 9 ord] to build ! capacity ( ! cov]$ entity & ensure compliance ) proc$ures e/abli%$ by ! ,adm9i/rator2 7#b7 %all ensure t ! tra9+ & te*nical assi/ance describ$ 9 p>agraph 7#a7 is provid$ at no co/ or at a l[ co/2 & 7#c7 may ent] into a contract to provide ! tra9+ or te*nical assi/ance describ$ 9 p>agraph 7#a7 ) #a or m organizations ) exp]tise 9 ! entrepr5eurial developm5t programs ( ! ,adm9i/ration1 innovation1 & entrepr5eurial developm5t4 7f7 ,coord9ation ,9 mak+ a grant or loan ) f9ancial assi/ance provid$ "u ?is section1 a cov]$ entity may coord9ate )-- 7#a7 res\rce & l5d+ p>tn]s ( ! ,adm9i/ration2 7#b7 programs ( ,/ate & local gov]nm5ts t are conc]n$ ) aid+ small bus9ess conc]ns2 & 7#c7 o!r ,f$]al ag5cies1 includ+ to provide s]vices to & assi/ small bus9ess conc]ns 9 p>ticipat+ 9 ! ,,sbir & ,,/tr programs1 z def9$ 9 section #i7;e74 7g7 ,publication ( in=mation ,! ,adm9i/rator %all-- 7#a7 publi% in=mation ab\t ! program c>ri$ out "u ?is section onl9e1 includ+-- 7,a7 on ! website ( ! ,adm9i/ration2 & 7,b7 on ! social m$ia ( ! ,adm9i/ration2 & 7#b7 reque/ t ! res\rce & l5d+ p>tn]s ( ! ,adm9i/ration & ! di/rict (fices ( ! ,adm9i/ration publicize ! program c>ri$ out "u ?is section4 7h7 ,annual report+ ,n lat] ?an #a ye> aft] ! date on :i* ! ,adm9i/rator e/abli%es ! program "u ?is section1 & annually !reaft]1 ! ,adm9i/rator %all submit to ,congress a report on ! activities "u ! program1 includ+-- 7#a7 ! numb] ( grants & loans made us+ ! f9ancial assi/ance provid$ "u ?is section2 7#b7 ! use ( ! funds f grants & loans describ$ 9 subp>agraph 7,a72 7#c7 ! am\nt ( f9ancial assi/ance provid$ "u ?is section t 0 exp5d$ = ea* job creat$ or reta9$ ?r\gh ! exp5diture ( t f9ancial assi/ance2 7#d7 ! numb] ( />tup1 newly e/abli%$1 & gr[+ cov]$ small bus9ess conc]ns to :i* grants & loans h be5 made us+ f9ancial assi/ance provid$ "u ?is section 7ref]r$ to 9 ?is subsection z p>ticipants71 includ+ a breakd[n ( ! own]s ( ! p>ticipants by race1 g5d]1 vet]an /atus1 & urban v]sus rural location2 7#e7 ! ret5tion rate = p>ticipants2 7#f7 ! total & m$ian am\nt ( capital access$ by p>ticipants1 includ+ ! type ( capital access$2 7#g7 ! total & m$ian numb] ( employees ( p>ticipants2 7#h7 ! numb] & m$ian wage ( jobs creat$ by p>ticipants2 7#i7 ! numb] ( jobs su/a9$ by p>ticipants2 & 7#aj7 in=mation reg>d+ su* o!r metrics z ! ,adm9i/rator det]m9es appropriate1 includ+ coord9ation ) o!r private or public small bus9ess assi/ance programs4 7i7 ,fund+ 7#a7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ su* sums z may be necess>y to c>ry out ?is section4 7#b7 ,adm9i/rative exp5ses ,( ! am\nt made available to c>ry out ?is section = any fiscal ye>1 n m ?an #aj p]c5t may be us$ by ! ,adm9i/rator = adm9i/rative exp5ses4 4 #f4 ,regulations ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,adm9i/rator ( ! ,small ,bus9ess ,adm9i/ration %all promulgate regulations to c>ry out sections #di & #ej ( ! ,small ,bus9ess ,act1 z am5d$ by ?is ,act1 :i* %all include proc$ures to-- 7#a7 v]ify ! prop] use ( f9ancial assi/ance provid$ "u ea* su* section1 includ+ a grant or loan made "u su* section #ej ) f9ancial assi/ance provid$ "u t section2 & 7#b7 e/abli% clawback provisions = any in/ance ( fraud committ$ ) respect to any f9ancial assi/ance1 or any grant or loan1 describ$ 9 p>agraph 7#a7 ( ?is section4