Sec. 7. Regional innovation clusters
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In this section: The term Administrator means the Administrator of the Small Business Administration. The term Alaska Native Corporation has the meaning given the term Native Corporation in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602 ). The term award means a contract, grant, or cooperative agreement. The term Cluster Initiative means a formally organized effort to promote the growth and competitiveness of an industry sector through collaborative activities among Industry Cluster participants that is led by— a State; an Indian Tribe, an Alaska Native Corporation, or a Native Hawaiian Organization; a city or other political subdivision of a State; a nonprofit organization, including an institution of higher education or a venture development organization; or a small business concern.
The term Industry Cluster means a geographic concentration, relative to the size of the region under consideration, of interconnected businesses, suppliers, service providers, and associated institutions in an industry sector, including advanced manufacturing, precision agriculture, cybersecurity, biosciences, water technologies, energy production and efficiency, and outdoor recreation. The term Indian Tribe has the meaning given the term Indian tribe in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ).
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 ). The term Native Hawaiian Organization has the meaning given the term in section 8(a)(15) of the Small Business Act ( 15 U.S.C. 637(a)(15) ). The term small business concern has the meaning given the term in section 3 of the Small Business Act ( 15 U.S.C. 632 ). The term State means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States.
The Administrator shall make awards to Cluster Initiatives that strengthen Industry Clusters in accordance with the requirements under this subsection. Cluster Initiatives shall be assessed according to their performance along the following metrics: Growth in number of small business concerns participating in the Industry Cluster and support industries. Growth in number of small business concern startups in the Industry Cluster. Growth in total capital, including revenue and equity investments, flowing to small business concern participants in the Industry Cluster.
Growth in job creation by small business concerns or, in regions with declining total employment, job retention by small business concerns in the Industry Cluster. Growth in new products, services, or business lines. Growth in new technologies developed within the Industry Cluster. The Administrator shall require Cluster Initiatives to submit annual reports documenting the outcomes under paragraph
(2)and the activities contributing to such outcomes. In making awards to Cluster Initiatives under this subsection, the Administrator shall consider— the probable impact of the Cluster Initiative on the competitiveness of the Industry Cluster, including— whether the Cluster Initiative will be inclusive of any and all organizations that might benefit from participation, including startups, small business concerns not locally owned, and small business concerns rival to existing members of the Industry Cluster; and whether the Cluster Initiative will encourage broad participation by and collaboration among all types of participants; if the proposed Cluster Initiative fits within a broader and achievable economic development strategy; the capacity and commitment of the sponsoring organization of the Cluster Initiative organization, including— the expected ability of the Cluster Initiative to access additional funds from other sources; and the capacity of the Cluster Initiative to sustain activities once grant funds have been expended; the degree of involvement from relevant State and regional economic and workforce development organizations, other public purpose institutions (such as universities, community colleges, venture development organizations, and workforce boards), and the private sector, including industry associations; the extent to which economic diversity across regions of the United States would be increased through the award; and the geographic distribution of Cluster Initiatives around the United States. The Administrator may make a 1-year award (not to exceed $1,000,000) with each Cluster Initiative. The Administrator may renew an award made to a Cluster Initiative under paragraph (5)— for 1 year in an amount not to exceed $750,000 per year; and for a total period not to exceed 5 years. A Cluster Initiative shall compete in a new funding opportunity to receive any further awards under this subsection. As a condition of receiving an award under this subsection, a Cluster Initiative shall provide $1 in non-Federal matching funds, including in-kind contributions, for every $2 received under the award. The Administrator may waive part of the matching funds requirement under subparagraph
(A)for a Cluster Initiative that— has not previously received an award under this subsection; or supports a noncore area, a micropolitan area, or a small metropolitan statistical area with a population of not more than 200,000. The Administrator shall enter into new awards under this subsection for each year that appropriations are available. The Administrator may make awards for feasibility studies, planning, and operations to support the launch of new Cluster Initiatives. The total amount of awards made under paragraph
(1)shall not exceed $250,000. The Administrator may make awards under paragraph
(1)to— a State; an Indian Tribe, an Alaska Native Corporation, or a Native Hawaiian Organization; a city or other political subdivision of a State; a nonprofit organization, including an institution of higher education or a venture development organization; or a consortium consisting of entities described in subparagraphs
(A)through (D). There are authorized to be appropriated $50,000,000 for fiscal year 2023 and for each subsequent fiscal year to carry out this section.
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