Sec. 20242. Pilot program to fund local incubators
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The Secretary of Commerce shall establish a competitive program to make grants to States and political subdivisions of States to partner with local incubators in order to provide start-ups with workspace and other resources for use in developing their businesses. The Secretary may only award a grant under this section to a State or political subdivision of a State that submits an application at such time, in such form, and with such information and assurances as the Secretary may require, including an identification of one or more incubators with which the State or political subdivision will partner in implementing the grant.
A State or political subdivision of a State may not receive more than one grant under this section. For purposes of the preceding sentence, a grant received by a State shall not be considered to be received by a political subdivision of the State, and a grant received by a political subdivision of a State shall not be considered to be received by the State. A grant awarded under this section may not exceed $500,000. A State or political subdivision of a State that receives a grant under this section shall use grant funds to partner with one or more incubators located within the territory of such State or political subdivision in order to provide start-ups with workspace and other resources for use in developing their businesses.
The partnership may take such form as the Secretary considers appropriate, including one or more subgrants from the State or political subdivision to the incubator or incubators. Grant funds may be used for any expense incurred in order to provide start-ups with workspace and other resources for use in developing their businesses, including— purchase or rental of land; modification of buildings; charges for utility services or broadband service; fees of consultants for the provision of technical or professional assistance; costs of promoting the incubator or incubators; and any other such expense that the Secretary considers appropriate.
A State or political subdivision of a State may not partner with an incubator (or group of incubators) in implementing a grant under this section unless the incubator (or group of incubators) agrees that, with respect to the expenses to be incurred in carrying out activities within the scope of the partnership, the incubator (or group of incubators) will make available from private funds contributions in an amount equal to not less than 50 percent of the amount made available by the State or political subdivision from grant funds under this section.
Not later than 180 days after the end of fiscal year 2022, the Secretary shall submit to Congress a report on the results achieved by the grant program established under this section. Such report shall include recommendations of the Secretary with respect to extending, expanding, or improving the program. In this section: The term incubator means a private-sector entity that— provides start-ups with workspace and other resources (such as utilities, broadband service, and technical or professional assistance) for use in developing their businesses; and may charge start-ups a reasonable fee for such resources.
The term Secretary means the Secretary of Commerce. The term start-up means any business entity (including an individual operating an unincorporated business) that, as of the time the entity receives resources from an incubator— has been in operation for not more than 5 years; has not more than 5 employees; and for the most recently completed fiscal year of the entity (if any) and any preceding fiscal year, has annual gross revenues of less than $150,000. The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian tribe.
There is authorized to be appropriated to the Secretary to carry out this section $5,000,000, of which not more than 5 percent shall be available for the costs of administering the grant program established under this section, for each of the fiscal years 2022 through 2024.