Native American Business Incubator Program Act

PUBLIC LAW 116–174—OCT. 20, 2020

134 STAT. 839

Public Law 116–174
116th Congress
An Act
To establish a business incubators program within the Department of the Interior
to promote economic development in Indian reservation communities.

Oct. 20, 2020
[S. 294]

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
This Act may be cited as the ‘‘Native American Business Incubators Program Act’’.

Native American
Business
Incubators
Program Act.
25 USC 5801
note.

SEC. 2. FINDINGS.

25 USC 5801.

SECTION 1. SHORT TITLE.

Congress finds that—
(1) entrepreneurs face specific challenges when transforming ideas into profitable business enterprises;
(2) entrepreneurs that want to provide products and services in reservation communities face an additional set of challenges that requires special knowledge;
(3) a business incubator is an organization that assists
entrepreneurs in navigating obstacles that prevent innovative
ideas from becoming viable businesses by providing services
that include—
(A) workspace and facilities resources;
(B) access to capital, business education, and counseling;
(C) networking opportunities;
(D) mentorship opportunities; and
(E) an environment intended to help establish and
expand business operations;
(4) the business incubator model is suited to accelerating
entrepreneurship in reservation communities because the business incubator model promotes collaboration to address shared
challenges and provides individually tailored services for the
purpose of overcoming obstacles unique to each participating
business; and
(5) business incubators will stimulate economic development by providing Native entrepreneurs with the tools necessary to grow businesses that offer products and services to
reservation communities.
SEC. 3. DEFINITIONS.

25 USC 5802.

In this Act:
(1) BUSINESS INCUBATOR.—The term ‘‘business incubator’’
means an organization that—
(A) provides physical workspace and facilities resources
to startups and established businesses; and

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00001

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

PUBL174

134 STAT. 840

PUBLIC LAW 116–174—OCT. 20, 2020
(B) is designed to accelerate the growth and success
of businesses through a variety of business support
resources and services, including—
(i) access to capital, business education, and counseling;
(ii) networking opportunities;
(iii) mentorship opportunities; and
(iv) other services intended to aid in developing
a business.
(2) ELIGIBLE APPLICANT.—The term ‘‘eligible applicant’’
means an applicant eligible to apply for a grant under section
4(b).
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5304).
(4) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given the term
in section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001).
(5) NATIVE AMERICAN; NATIVE.—The terms ‘‘Native American’’ and ‘‘Native’’ have the meaning given the term ‘‘Indian’’
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304).
(6) NATIVE BUSINESS.—The term ‘‘Native business’’ means
a business concern that is at least 51-percent owned and controlled by 1 or more Native Americans.
(7) NATIVE ENTREPRENEUR.—The term ‘‘Native entrepreneur’’ means an entrepreneur who is a Native American.
(8) PROGRAM.—The term ‘‘program’’ means the program
established under section 4(a).
(9) RESERVATION.—The term ‘‘reservation’’ has the meaning
given the term in section 3 of the Indian Financing Act of
1974 (25 U.S.C. 1452).
(10) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior.
(11) TRIBAL COLLEGE OR UNIVERSITY.—The term ‘‘tribal college or university’’ has the meaning given the term ‘‘Tribal
College or University’’ in section 316(b) of the Higher Education
Act of 1965 (20 U.S.C. 1059c(b)).

Grants.
25 USC 5803.

VerDate Sep 11 2014

09:09 Oct 23, 2020

SEC. 4. ESTABLISHMENT OF PROGRAM.

(a) IN GENERAL.—The Secretary shall establish a program in
the Office of Indian Energy and Economic Development under which
the Secretary shall provide financial assistance in the form of
competitive grants to eligible applicants for the establishment and
operation of business incubators that serve reservation communities
by providing business incubation and other business services to
Native businesses and Native entrepreneurs.
(b) ELIGIBLE APPLICANTS.—
(1) IN GENERAL.—To be eligible to receive a grant under
the program, an applicant shall—
(A) be—
(i) an Indian tribe;
(ii) a tribal college or university;
(iii) an institution of higher education; or
(iv) a private nonprofit organization or tribal nonprofit organization that—

Jkt 019139

PO 00174

Frm 00002

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

PUBL174

PUBLIC LAW 116–174—OCT. 20, 2020

134 STAT. 841

(I) provides business and financial technical
assistance; and
(II) will commit to serving 1 or more reservation communities;
(B) be able to provide the physical workspace, equipment, and connectivity necessary for Native businesses
and Native entrepreneurs to collaborate and conduct business on a local, regional, national, and international level;
and
(C) in the case of an entity described in clauses (ii)
through (iv) of subparagraph (A), have been operational
for not less than 1 year before receiving a grant under
the program.
(2) JOINT PROJECT.—
(A) IN GENERAL.—Two or more entities may submit
a joint application for a project that combines the resources
and expertise of those entities at a physical location dedicated to assisting Native businesses and Native entrepreneurs under the program.
(B) CONTENTS.—A joint application submitted under
subparagraph (A) shall—
(i) contain a certification that each participant of
the joint project is one of the eligible entities described
in paragraph (1)(A); and
(ii) demonstrate that together the participants
meet the requirements of subparagraphs (B) and (C)
of paragraph (1).
(c) APPLICATION AND SELECTION PROCESS.—
(1) APPLICATION REQUIREMENTS.—Each eligible applicant
desiring a grant under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require,
including—
(A) a certification that the applicant—
(i) is an eligible applicant;
(ii) will designate an executive director or program
manager, if such director or manager has not been
designated, to manage the business incubator; and
(iii) agrees—
(I) to a site evaluation by the Secretary as
part of the final selection process;
(II) to an annual programmatic and financial
examination for the duration of the grant; and
(III) to the maximum extent practicable, to
remedy any problems identified pursuant to the
site evaluation under subclause (I) or an examination under subclause (II);
(B) a description of the 1 or more reservation communities to be served by the business incubator;
(C) a 3-year plan that describes—
(i) the number of Native businesses and Native
entrepreneurs to be participating in the business incubator;
(ii) whether the business incubator will focus on
a particular type of business or industry;

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00003

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

Time period.

Certification.

Certification.

Evaluation.

Time period.
Plan.

PUBL174

134 STAT. 842

PUBLIC LAW 116–174—OCT. 20, 2020
(iii) a detailed breakdown of the services to be
offered to Native businesses and Native entrepreneurs
participating in the business incubator; and
(iv) a detailed breakdown of the services, if any,
to be offered to Native businesses and Native entrepreneurs not participating in the business incubator;
(D) information demonstrating the effectiveness and
experience of the eligible applicant in—
(i) conducting financial, management, and marketing assistance programs designed to educate or
improve the business skills of current or prospective
businesses;
(ii) working in and providing services to Native
American communities;
(iii) providing assistance to entities conducting
business in reservation communities;
(iv) providing technical assistance under Federal
business and entrepreneurial development programs
for which Native businesses and Native entrepreneurs
are eligible; and
(v) managing finances and staff effectively; and
(E) a site description of the location at which the
eligible applicant will provide physical workspace, including
a description of the technologies, equipment, and other
resources that will be available to Native businesses and
Native entrepreneurs participating in the business incubator.
(2) EVALUATION CONSIDERATIONS.—
(A) IN GENERAL.—In evaluating each application, the
Secretary shall consider—
(i) the ability of the eligible applicant—
(I) to operate a business incubator that effectively imparts entrepreneurship and business
skills to Native businesses and Native entrepreneurs, as demonstrated by the experience and
qualifications of the eligible applicant;
(II) to commence providing services within a
minimum period of time, to be determined by the
Secretary; and
(III) to provide quality incubation services to
a significant number of Native businesses and
Native entrepreneurs;
(ii) the experience of the eligible applicant in providing services in Native American communities,
including in the 1 or more reservation communities
described in the application; and
(iii) the proposed location of the business incubator.
(B) PRIORITY.—
(i) IN GENERAL.—In evaluating the proposed location of the business incubator under subparagraph
(A)(iii), the Secretary shall—
(I) consider the program goal of achieving
broad geographic distribution of business incubators; and

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00004

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

PUBL174

PUBLIC LAW 116–174—OCT. 20, 2020

134 STAT. 843

(II) except as provided in clause (ii), give priority to eligible applicants that will provide business incubation services on or near the reservation
of the 1 or more communities that were described
in the application.
(ii) EXCEPTION.—The Secretary may give priority
to an eligible applicant that is not located on or near
the reservation of the 1 or more communities that
were described in the application if the Secretary determines that—
(I) the location of the business incubator will
not prevent the eligible applicant from providing
quality business incubation services to Native
businesses and Native entrepreneurs from the 1
or more reservation communities to be served; and
(II) siting the business incubator in the identified location will serve the interests of the 1 or
more reservation communities to be served.
(3) SITE EVALUATION.—
(A) IN GENERAL.—Before making a grant to an eligible
applicant, the Secretary shall conduct a site visit, evaluate
a video submission, or evaluate a written site proposal
(if the applicant is not yet in possession of the site) of
the proposed site to ensure the proposed site will permit
the eligible applicant to meet the requirements of the program.
(B) WRITTEN SITE PROPOSAL.—A written site proposal
shall meet the requirements described in paragraph (1)(E)
and contain—
(i) sufficient detail for the Secretary to ensure in
the absence of a site visit or video submission that
the proposed site will permit the eligible applicant
to meet the requirements of the program; and
(ii) a timeline describing when the eligible
applicant will be—
(I) in possession of the proposed site; and
(II) operating the business incubator at the
proposed site.
(C) FOLLOWUP.—Not later than 1 year after awarding
a grant to an eligible applicant that submits an application
with a written site proposal, the Secretary shall conduct
a site visit or evaluate a video submission of the site
to ensure the site is consistent with the written site proposal.
(d) ADMINISTRATION.—
(1) DURATION.—Each grant awarded under the program
shall be for a term of 3 years.
(2) PAYMENT.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), the Secretary shall disburse grant funds awarded to
an eligible applicant in annual installments.
(B) MORE FREQUENT DISBURSEMENTS.—On request by
the applicant, the Secretary may make disbursements of
grant funds more frequently than annually, on the condition that disbursements shall be made not more frequently
than quarterly.
(3) NON-FEDERAL CONTRIBUTIONS FOR INITIAL ASSISTANCE.—

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00005

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

Determination.

Timeline.

Deadline.

PUBL174

134 STAT. 844

Determination.

Time period.
Determination.

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PUBLIC LAW 116–174—OCT. 20, 2020
(A) IN GENERAL.—Except as provided in subparagraph
(B), an eligible applicant that receives a grant under the
program shall provide non-Federal contributions in an
amount equal to not less than 25 percent of the grant
amount disbursed each year.
(B) WAIVER.—The Secretary may waive, in whole or
in part, the requirements of subparagraph (A) with respect
to an eligible applicant if, after considering the ability
of the eligible applicant to provide non-Federal contributions, the Secretary determines that—
(i) the proposed business incubator will provide
quality business incubation services; and
(ii) the 1 or more reservation communities to be
served are unlikely to receive similar services because
of remoteness or other reasons that inhibit the provision of business and entrepreneurial development services.
(4) RENEWALS.—
(A) IN GENERAL.—The Secretary may renew a grant
award under the program for a term not to exceed 3 years.
(B) CONSIDERATIONS.—In determining whether to
renew a grant award, the Secretary shall consider with
respect to the eligible applicant—
(i) the results of the annual evaluations of the
eligible applicant under subsection (f)(1);
(ii) the performance of the business incubator of
the eligible applicant, as compared to the performance
of other business incubators receiving assistance under
the program;
(iii) whether the eligible applicant continues to
be eligible for the program; and
(iv) the evaluation considerations for initial awards
under subsection (c)(2).
(C) NON-FEDERAL CONTRIBUTIONS FOR RENEWALS.—An
eligible applicant that receives a grant renewal under
subparagraph (A) shall provide non-Federal contributions
in an amount equal to not less than 33 percent of the
total amount of the grant.
(5) NO DUPLICATIVE GRANTS.—An eligible applicant shall
not be awarded a grant under the program that is duplicative
of existing Federal funding from another source.
(e) PROGRAM REQUIREMENTS.—
(1) USE OF FUNDS.—An eligible applicant receiving a grant
under the program may use grant amounts—
(A) to provide physical workspace and facilities for
Native businesses and Native entrepreneurs participating
in the business incubator;
(B) to establish partnerships with other institutions
and entities to provide comprehensive business incubation
services to Native businesses and Native entrepreneurs
participating in the business incubator; and
(C) for any other uses typically associated with business incubators that the Secretary determines to be appropriate and consistent with the purposes of the program.
(2) MINIMUM REQUIREMENTS.—Each eligible applicant
receiving a grant under the program shall—

PO 00174

Frm 00006

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

PUBL174

PUBLIC LAW 116–174—OCT. 20, 2020

134 STAT. 845

(A) offer culturally tailored incubation services to
Native businesses and Native entrepreneurs;
(B) use a competitive process for selecting Native
businesses and Native entrepreneurs to participate in the
business incubator;
(C) provide physical workspace that permits Native
businesses and Native entrepreneurs to conduct business
and collaborate with other Native businesses and Native
entrepreneurs;
(D) provide entrepreneurship and business skills
training and education to Native businesses and Native
entrepreneurs including—
(i) financial education, including training and
counseling in—
(I) applying for and securing business credit
and investment capital;
(II) preparing and presenting financial statements; and
(III) managing cash flow and other financial
operations of a business;
(ii) management education, including training and
counseling in planning, organization, staffing,
directing, and controlling each major activity or function of a business or startup; and
(iii) marketing education, including training and
counseling in—
(I) identifying and segmenting domestic and
international market opportunities;
(II) preparing and executing marketing plans;
(III) locating contract opportunities;
(IV) negotiating contracts; and
(V) using varying public relations and advertising techniques;
(E) provide direct mentorship or assistance finding
mentors in the industry in which the Native business or
Native entrepreneur operates or intends to operate; and
(F) provide access to networks of potential investors,
professionals in the same or similar fields, and other business owners with similar businesses.
(3) TECHNOLOGY.—Each eligible applicant shall leverage
technology to the maximum extent practicable to provide Native
businesses and Native entrepreneurs with access to the
connectivity tools needed to compete and thrive in 21st-century
markets.
(f) OVERSIGHT.—
(1) ANNUAL EVALUATIONS.—Not later than 1 year after
the date on which the Secretary awards a grant to an eligible
applicant under the program, and annually thereafter for the
duration of the grant, the Secretary shall conduct an evaluation
of, and prepare a report on, the eligible applicant, which shall—
(A) describe the performance of the eligible applicant;
and
(B) be used in determining the ongoing eligibility of
the eligible applicant.
(2) ANNUAL REPORT.—
(A) IN GENERAL.—Not later than 1 year after the date
on which the Secretary awards a grant to an eligible

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00007

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

Deadline.
Reports.

PUBL174

134 STAT. 846

PUBLIC LAW 116–174—OCT. 20, 2020
applicant under the program, and annually thereafter for
the duration of the grant, each eligible applicant receiving
an award under the program shall submit to the Secretary
a report describing the services the eligible applicant provided under the program during the preceding year.
(B) REPORT CONTENT.—The report described in
subparagraph (A) shall include—
(i) a detailed breakdown of the Native businesses
and Native entrepreneurs receiving services from the
business incubator, including, for the year covered by
the report—
(I) the number of Native businesses and
Native entrepreneurs participating in or receiving
services from the business incubator and the types
of services provided to those Native businesses
and Native entrepreneurs;
(II) the number of Native businesses and
Native entrepreneurs established and jobs created
or maintained; and
(III) the performance of Native businesses and
Native entrepreneurs while participating in the
business incubator and after graduation or departure from the business incubator; and
(ii) any other information the Secretary may
require to evaluate the performance of a business incubator to ensure appropriate implementation of the program.
(C) LIMITATIONS.—To the maximum extent practicable,
the Secretary shall not require an eligible applicant to
report under subparagraph (A) information provided to the
Secretary by the eligible applicant under other programs.
(D) COORDINATION.—The Secretary shall coordinate
with the heads of other Federal agencies to ensure that,
to the maximum extent practicable, the report content and
form under subparagraphs (A) and (B) are consistent with
other reporting requirements for Federal programs that
provide business and entrepreneurial assistance.
(3) REPORT TO CONGRESS.—
(A) IN GENERAL.—Not later than 2 years after the
date on which the Secretary first awards funding under
the program, and biennially thereafter, the Secretary shall
submit to the Committee on Indian Affairs of the Senate
and the Committee on Natural Resources of the House
of Representatives a report on the performance and
effectiveness of the program.
(B) CONTENTS.—Each report submitted under subparagraph (A) shall—
(i) account for each program year; and
(ii) include with respect to each business incubator
receiving grant funds under the program—
(I) the number of Native businesses and
Native entrepreneurs that received business
incubation or other services;
(II) the number of businesses established with
the assistance of the business incubator;

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00008

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL174.116

PUBL174

PUBLIC LAW 116–174—OCT. 20, 2020

134 STAT. 847

(III) the number of jobs established or maintained by Native businesses and Native entrepreneurs receiving business incubation services,
including a description of where the jobs are
located with respect to reservation communities;
(IV) to the maximum extent practicable, the
amount of capital investment and loan financing
accessed by Native businesses and Native entrepreneurs receiving business incubation services;
and
(V) an evaluation of the overall performance
of the business incubator.
SEC. 5. REGULATIONS.

Not later than 180 days after the date of enactment of this
Act, the Secretary shall promulgate regulations to implement the
program.
SEC. 6. SCHOOLS TO BUSINESS INCUBATOR PIPELINE.

Deadline.
25 USC 5804.

25 USC 5805.

The Secretary shall facilitate the establishment of relationships
between eligible applicants receiving funds through the program
and educational institutions serving Native American communities,
including tribal colleges and universities.
SEC. 7. AGENCY PARTNERSHIPS.

The Secretary shall coordinate with the Secretary of Agriculture, the Secretary of Commerce, the Secretary of the Treasury,
and the Administrator of the Small Business Administration to
ensure, to the maximum extent practicable, that business incubators
receiving grant funds under the program have the information
and materials needed to provide Native businesses and Native
entrepreneurs with the information and assistance necessary to
apply for business and entrepreneurial development programs
administered by the Department of Agriculture, the Department
of Commerce, the Department of the Treasury, and the Small
Business Administration.
SEC. 8. AUTHORIZATIONS OF APPROPRIATIONS.

Coordination.
25 USC 5806.

25 USC 5807.

There are authorized to be appropriated to carry out the program $5,000,000 for each of fiscal years 2020 through 2024.
Approved October 20, 2020.

LEGISLATIVE HISTORY—S. 294:
SENATE REPORTS: No. 116–29 (Comm. on Indian Affairs).
CONGRESSIONAL RECORD:
Vol. 165 (2019): June 27, considered and passed Senate.
Vol. 166 (2020): Sept. 21, considered and passed House.

Æ

VerDate Sep 11 2014

09:09 Oct 23, 2020

Jkt 019139

PO 00174

Frm 00009

Fmt 6580

Sfmt 6580

E:\PUBLAW\PUBL174.116

PUBL174