[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9880 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9880
To amend the Small Business Act to establish the Entrepreneurship Corps
National Service Program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2024
Mr. Phillips introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committees on
Education and the Workforce, and Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Small Business Act to establish the Entrepreneurship Corps
National Service Program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Entrepreneurship Corps for National
Service Act''.
SEC. 2. ENTREPRENEURSHIP CORPS NATIONAL SERVICE PROGRAM.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 49 as section 50; and
(2) by inserting after section 48 the following new
section:
``SEC. 49. ENTREPRENEURSHIP CORPS NATIONAL SERVICE PROGRAM.
``(a) Definitions.--In this section:
``(1) Associate administrator.--The term `Associate
Administrator' means the Head of the Office of Investment and
Innovation of the Administration.
``(2) Census tract.--The term `census tract' means a census
tract delineated by the United States Bureau of the Census in
the most recent decennial census.
``(3) Distressed area.--The term `distressed area' means a
census tract experiencing economic distress, as determined by
the Associate Administrator based on the following economic
factors for such census tract:
``(A) Poverty rate.
``(B) Unemployment rate.
``(C) Median income.
``(D) The number of businesses, including the rate
of new business formation.
``(E) The number of individuals belonging to an
Indian tribe (as defined in section 8(a)(13)),
including the percentage of the total population
comprised of such individuals.
``(F) Such other economic factors as determined
appropriate by the Associate Administrator.
``(4) Fellow.--The term `fellow' means an individual
participating in the program.
``(5) Participating business.--The term `participating
business' means a small business concern to which a fellow is
assigned under the program.
``(6) Program.--The term `program' means the program
established under subsection (b).
``(b) Establishment.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this Act, the Administrator shall establish
in the Office of Investment and Innovation of the
Administration a program, to be known as the `Entrepreneurship
Corps National Service Program', to support economic activity
and job creation in distressed areas of the United States by
providing to small business concerns located in distressed
areas individuals with the skills and training needed by such
small business concerns.
``(2) Program administration.--The Associate Administrator
shall administer the program.
``(c) Program Fellows.--
``(1) In general.--To be a fellow, an individual must--
``(A) be at least 21 years of age;
``(B) have obtained an associates, baccalaureate,
or higher degree; and
``(C) enter into a written agreement with the
Associate Administrator under paragraph (2).
``(2) Service obligation agreement.--An individual may
become a fellow only if the individual enters into a written
agreement with the Associate Administrator that requires the
individual to serve as a fellow for a period of two years and
containing such other terms as determined appropriate by the
Associate Administrator.
``(3) Application.--An individual seeking to be a fellow
shall submit to the Associate Administrator an application at
such time, in such manner, and containing such information as
the Associate Administrator determines appropriate.
``(4) Fellow selection.--
``(A) In general.--The Associate Administrator
shall select the fellows in accordance with this
paragraph.
``(B) Selection criteria.--When selecting fellows
the Associate Administrator shall consider the
following:
``(i) The academic and professional
background and accomplishments of the
individual, including demonstrated expertise in
accounting, finance, economics, statistics,
marketing, computer science, mathematics, or
other subject areas related to business.
``(ii) Recommendations from teachers,
coaches, mentors, and others in a position to
evaluate the skills, expertise, background,
character, and fitness for service in the
program of the individual.
``(iii) The reasons provided by the
individual for participating in the program.
``(iv) Such other criteria as the Associate
Administrator determines appropriate based on
the nature, purpose, and objectives of the
program.
``(C) Fellow class size.--The Associate
Administrator shall determine the number of fellows
selected each year.
``(d) Participating Businesses.--
``(1) In general.--To be eligible to be assigned a fellow
under the program, a small business concern must--
``(A) have an employer identification number
(assigned pursuant to section 6109 of the Internal
Revenue Code of 1986);
``(B) have been established not more than five
years prior the date on which such small business
concern submits the application required under
paragraph (2);
``(C) have its headquarters or main office, and the
locations at which a majority of employees are
employed, located in distressed areas; and
``(D) in the 12-month period immediately preceding
the date on which such small business concern submits
the application required by paragraph (2), have gross
sales of not less than $200,000.
``(2) Application.--A small business seeking to be assigned
a fellow under the program shall submit to the Associate
Administrator an application at such time, in such manner, and
containing such information as the Associate Administrator
determines appropriate.
``(3) Selection of participating businesses.--
``(A) In general.--The Associate Administrator
shall select small business concerns to which a fellow
will be assigned under the program in accordance with
subparagraph (B).
``(B) Participating business selection.--When
selecting which small business concerns shall be
assigned a fellow under the program, the Associate
Administrator shall consider the following:
``(i) The growth or potential for success
of the small business concern, as demonstrated
by the financial statements of the small
business concern.
``(ii) The demonstrated ability of the
small business concern to access capital or
attract equity investment in such concern.
``(iii) The business plan of the small
business concern that includes a strategy for
long-term success, if any.
``(iv) The ability of the small business
concern to contribute to improving economic
conditions in the distressed area.
``(v) The demonstrated need of the small
business concern for a fellow under the
program.
``(vi) Any other criteria that the
Associate Administrator determines appropriate.
``(e) Assignment of Fellows.--
``(1) In general.--The Associate Administrator shall assign
fellows to small business concerns under the program in
accordance with this subsection.
``(2) Considerations.--When assigning fellows to small
business concerns business under the program, the Associate
Administrator shall consider--
``(A) the needs of the small business concern;
``(B) the expertise, experience, skills,
background, and interests of the fellow; and
``(C) the preferences of the fellow regarding the
location of the small business concern to which such
fellow is assigned under the program.
``(3) Duration.--The assignment of a fellow to a small
business concern under the program shall be for a period of two
years.
``(4) Assignment limit.--The Associate Administrator may
not assign a fellow under the program to any small business
concern to which, as of the date on which such assignment will
commence, any other fellow is assigned.
``(5) Resources.--
``(A) In general.--A participating business shall
provide to the fellow assigned to the participating
business under the program the resources required for
the fellow to carry out the duties such participating
business assigns to such fellow.
``(B) Reimbursement.--The Associate Administrator
shall reimburse a participating business for the
reasonable costs incurred by such participating
business for the resources provided by the business
under subparagraph (A).
``(6) Reassignment.--If a fellow assigned to a
participating business under the program is unable to continue
such assignment, or for such other reasons as determined
appropriate by the Associate Administrator, the Associate
Administrator may reassign such fellow to another small
business concern under the program for the remainder of the
period of the assignment to the participating business.
``(f) Benefits.--
``(1) Compensation.--
``(A) In general.--The Associate Administrator
shall pay to fellows a rate of pay determined
appropriate by the Associate Administrator.
``(B) Criteria.--When determining the rate of pay
for fellows under subparagraph (A), the Associate
Administrator shall ensure that the rate of pay--
``(i) is comparable with the rate of pay of
employees of the Federal Government with
similar educational attainment, experience, and
training; and
``(ii) is not less than the greater of the
applicable State minimum wage or the Federal
minimum hourly rate under the Fair Labor
Standards Act of 1938 (29 U.S.C. 201 et seq.).
``(2) Education grants.--
``(A) In general.--An individual who completes a
period of service as a fellow under program in
accordance with the agreement such individual entered
into under subsection (c)(2) and submits the
application required under subparagraph (B) shall be
eligible to receive a grant in accordance with this
paragraph.
``(B) Application.--An individual seeking a grant
under this paragraph shall submit to the Associate
Administrator an application at such time, in such
manner, and containing such information as the
Associate Administrator determines appropriate.
``(C) Grant amount.--The aggregate amount of a
grant made under this paragraph to an individual
described in subparagraph (B) may not exceed the
maximum amount of a grant under section 401 of the
Higher Education Act of 1965 (20 U.S.C. 1070a) for the
award year in which such individual becomes eligible
for a grant under this paragraph.
``(D) Disbursement.--
``(i) Initial disbursement.--Upon an
individual described in subparagraph (A)
becoming eligible to receive a grant under this
paragraph, the Associate Administrator shall
disburse amounts under such grant in an amount
equal to the lesser of--
``(I) the maximum amount allowed
under subparagraph (D); or
``(II) the amount equal to the sum
of the aggregate amount of the
outstanding loans of such individual
described in subclauses (I) through
(III) of subparagraph (E)(i) and the
amount of the expenses described in
subclause (IV) of such subparagraph
owed by such individual as of the date
on which such individual becomes
eligible for such grant.
``(ii) Rolling disbursement.--During the
seven-year period beginning on the date on
which the recipient of such grant becomes
eligible to receive such grant, the Associate
Administrator shall disburse to such recipient
additional amounts under such grant equal to
the amount of loans and expenses described in
subparagraph (E) that such recipient incurs on
or after such date, as such recipient incurs
such loans and expenses, to the extent that the
aggregate of such additional amounts and the
amount disbursed under clause (i) for such
grant does not exceed the maximum amount
allowed for such grant under subparagraph (C).
``(E) Uses.--
``(i) In general.--The recipient of a grant
awarded under this paragraph may use amounts
received under such grant only to pay the
following:
``(I) Qualified Federal student
loans made to such recipient.
``(II) Loans made to such
recipient--
``(aa) under subpart II of
part A of title VII of the
Public Health Service Act; or
``(bb) under part E of
title VIII of that Act.
``(III) Loans made to such
recipient--
``(aa) by a State to pay
postsecondary educational
expenses of the recipient; or
``(bb) by a public
institution of higher education
(as defined in section 101 of
the Higher Education Act of
1965 (20 U.S.C. 1001)) to pay a
borrower's costs of attendance
at such institution.
``(IV) Expenses incurred by such
recipient for a program of education
leading to an advanced degree to the
extent that such expenses are--
``(aa) expenses for which
amounts payable to an
individual under section
3313(c)(1)(B)(iv) of title 38,
United States Code, may be
used; and
``(bb) owed or incurred on
or after the date on which such
recipient becomes eligible for
such grant.
``(ii) Qualified federal student loan
defined.--In this subparagraph, the term
`qualified Federal student loan' means a loan
made under Part D of title IV of the Higher
Education Act of 1965 (1087a et seq.) except
such term does not include--
``(I) a Federal Direct PLUS Loan
made to the parents of a dependent
student; or
``(II) a Federal Direct
Consolidation Loan made under section