[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3034 Introduced in Senate (IS)]
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115th CONGRESS
2d Session
S. 3034
To amend the Consolidated Farm and Rural Development Act to reauthorize
the rural business investment program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 7, 2018
Mrs. Gillibrand introduced the following bill; which was read twice and
referred to the Committee on Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To amend the Consolidated Farm and Rural Development Act to reauthorize
the rural business investment 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 ``Rural Jobs and Investment Act of
2018''.
SEC. 2. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) is amended by adding at the end the following:
``SEC. 379I. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
rural jobs accelerator partnership established after the date
of enactment of this section that--
``(A) organizes key community and regional
stakeholders into a working group that--
``(i) focuses on the shared goals and needs
of the industry clusters that are objectively
identified as existing, emerging, or declining;
``(ii) represents a region defined by the
partnership in accordance with subparagraph
(B);
``(iii) includes 1 or more representatives
of each of--
``(I) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001));
``(II) a private entity; and
``(III) a government entity;
``(iv) may include 1 or more
representatives of--
``(I) an economic development or
other community or labor organization;
``(II) a financial institution,
including a community development
financial institution (as defined in
section 103 of the Community
Development Banking and Financial
Institutions Act of 1994 (12 U.S.C.
4702));
``(III) a philanthropic
organization; and
``(IV) a rural cooperative, if the
cooperative is organized as a nonprofit
organization; and
``(v) has, as a lead applicant--
``(I) a District Organization (as
defined in section 300.3 of title 13,
Code of Federal Regulations (or a
successor regulation));
``(II) an Indian tribe (as defined
in section 4 of the Indian Self-
Determination and Education Assistance
Act (25 U.S.C. 5304)), or a consortium
of Indian tribes;
``(III) a State or a political
subdivision of a State, including a
special purpose unit of a State or
local government engaged in economic
development activities, or a consortium
of political subdivisions;
``(IV) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001)) or a consortium of
institutions of higher education; or
``(V) a public or private nonprofit
organization; and
``(B) subject to approval by the Secretary, may--
``(i) serve a region that is--
``(I) a single jurisdiction; or
``(II) if the region is a rural
area, multijurisdictional; and
``(ii) define the region that the
partnership represents, if the region--
``(I) is large enough to contain
critical elements of the industry
cluster prioritized by the partnership;
``(II) is small enough to enable
close collaboration among members of
the partnership;
``(III) includes a majority of
communities that are located in--
``(aa) a nonmetropolitan
area that qualifies as a low-
income community (as defined in
section 45D(e) of the Internal
Revenue Code of 1986); and
``(bb) an area that has
access to or has a plan to
achieve broadband service
(within the meaning of title VI
of the Rural Electrification
Act of 1936 (7 U.S.C. 950bb et
seq.)); and
``(IV)(aa) has a population of
50,000 or fewer inhabitants; or
``(bb) for a region with a
population of more than 50,000
inhabitants, is the subject of a
positive determination by the Secretary
with respect to a rural-in-character
petition, including such a petition
submitted concurrently with the
application of the partnership for a
grant under this section.
``(2) Industry cluster.--The term `industry cluster' means
a broadly defined network of interconnected firms and
supporting institutions in related industries that accelerate
innovation, business formation, and job creation by taking
advantage of assets and strengths of a region in the business
environment.
``(3) High-wage job.--The term `high-wage job' means a job
that provides a wage that is greater than the median wage for
the applicable region, as determined by the Secretary.
``(4) Jobs accelerator.--The term `jobs accelerator' means
a jobs accelerator center or program located in or serving a
low-income rural community that may provide co-working space,
in-demand skills training, entrepreneurship support, and any
other services described in subsection (d)(1)(B).
``(5) Small and disadvantaged business.--The term `small
and disadvantaged business' has the meaning given the term
`small business concern owned and controlled by socially and
economically disadvantaged individuals' in section 8(d)(3)(C)
of the Small Business Act (15 U.S.C. 637(d)(3)(C)).
``(b) Establishment.--
``(1) In general.--The Secretary shall establish a grant
program under which the Secretary shall award grants, on a
competitive basis, to eligible entities to establish jobs
accelerators, including related programming, that--
``(A) improve the ability of distressed rural
communities to create high-wage jobs, accelerate the
formation of new businesses with high-growth potential,
and strengthen regional economies, including by helping
to build capacity in the applicable region to achieve
those goals; and
``(B) help rural communities identify and maximize
local assets and connect to regional opportunities,
networks, and industry clusters that demonstrate high
growth potential.
``(2) Cost-sharing.--
``(A) In general.--The Federal share of the cost of
any activity carried out using a grant made under
paragraph (1) shall be not greater than 80 percent.
``(B) In-kind contributions.--The non-Federal share
of the total cost of any activity carried out using a
grant made under paragraph (1) may be in the form of
donations or in-kind contributions of goods or services
fairly valued.
``(3) Selection criteria.--In selecting eligible entities
to receive grants under paragraph (1), the Secretary shall
consider--
``(A) the commitment of participating core
stakeholders in the jobs accelerator partnership,
including a demonstration that--
``(i) investment organizations, including
venture development organizations, venture
capital firms, revolving loan funders, angel
investment groups, community lenders, community
development financial institutions, rural
business investment companies, small business
investment companies (as defined in section 103
of the Small Business Investment Act of 1958
(15 U.S.C. 662)), philanthropic organizations,
and other institutions focused on expanding
access to capital, are committed partners in
the jobs accelerator partnership and willing to
potentially invest in projects emerging from
the jobs accelerator;
``(ii) institutions of higher education,
applied research institutions, workforce
development entities, and community-based
organizations are willing to partner with the
jobs accelerator to provide workers with skills
in computer science and other technology
programs relevant to the industry cluster needs
of the region, with an emphasis on the use of
on-the-job training, registered
apprenticeships, customized training, classroom
occupational training, or incumbent worker
training; and
``(iii) employers are willing to hire
workers to work remotely from the jobs
accelerator in high-wage jobs;
``(B) the ability of the eligible entity to provide
the non-Federal share as required under paragraph (2);
``(C) the speed of available broadband service and
how the jobs accelerator plans to improve access to
high-speed broadband service, if necessary, and
leverage that broadband service for programs of the
jobs accelerator;
``(D) the identification of a targeted industry
cluster, including a description of--
``(i) data showing the existence of
emergence of an industry cluster;
``(ii) the importance of the industry
cluster to economic growth in the region;
``(iii) the specific needs and
opportunities for growth in the industry
cluster;
``(iv) the unique assets a region has to
support the industry cluster and to have a
competitive advantage in that industry cluster;
``(v) evidence of a concentration of firms
or concentration of employees in the industry
cluster; and
``(vi) available industry-specific
infrastructure that supports the industry
cluster;
``(E) the ability of the partnership to link rural
communities to markets, networks, industry clusters,
and other regional opportunities and assets--
``(i) to improve the competitiveness of the
rural region;
``(ii) to repatriate United States jobs;
``(iii) to foster high-wage job creation;
``(iv) to support innovation and
entrepreneurship; and
``(v) to promote private investment in the
rural regional economy;
``(F) other grants or loans of the Secretary and
other Federal agencies that the jobs accelerator would
be able to leverage; and
``(G) prospects for the proposed center and related
programming to have sustainability beyond the full
maximum length of assistance under this subsection,
including the maximum number of renewals.
``(4) Grant term and renewals.--
``(A) Term.--The initial term of a grant under
paragraph (1) shall be 4 years.
``(B) Renewal.--The Secretary may renew a grant
under paragraph (1) for an additional period of not
longer than 2 years if the Secretary is satisfied,
using the evaluation under subsection (e)(2), that the
grant recipient has successfully established a jobs
accelerator and related programming.
``(5) Geographic distribution.--To the maximum extent
practicable, the Secretary shall provide grants under paragraph
(1) for jobs accelerators and related programming in not fewer
than 25 States at any time.
``(c) Grant Amount.--A grant awarded under subsection (b) may be in
an amount equal to--
``(1) not less than $500,000; and
``(2) not more than $2,000,000.
``(d) Use of Funds.--
``(1) In general.--Subject to paragraph (2), funds from a
grant awarded under subsection (b) may only be used--
``(A) to construct, purchase, or equip a building
to serve as an innovation center, which may include--
``(i) housing for business owners or
workers;
``(ii) co-working space, which may include
space for remote work;
``(iii) space for businesses to utilize
with a focus on entrepreneurs and small and
disadvantaged businesses but that may include
collaboration with companies of all sizes;
``(iv) job training programs; and
``(v) efforts to utilize the innovation
center as part of the development of a
community downtown; and
``(B) to support programs to be carried out at, or
in direct partnership with, the jobs accelerator that
support the objectives of the jobs accelerator,
including--
``(i) linking rural communities to markets,
networks, industry clusters, and other regional
opportunities to support high-wage job
creation, new business formation, and economic
growth;
``(ii) integrating small businesses into a
supply chain;
``(iii) creating or expanding
commercialization activities for new business
formation;
``(iv) identifying and building assets in
rural communities that are crucial to
supporting regional economies;
``(v) facilitating the repatriation of
high-wage jobs to the United States;
``(vi) supporting the deployment of
innovative processes, technologies, and
products;
``(vii) enhancing the capacity of small
businesses in regional industry clusters,
including small and disadvantaged businesses;
``(viii) increasing United States exports
and business interaction with international
buyers and suppliers;
``(ix) developing the skills and expertise
of local workforces, entrepreneurs, and
institutional partners to support growing
industry clusters, including the upskilling of
incumbent workers;
``(x) ensuring rural communities have the
capacity and ability to carry out projects
relating to housing, community facilities,
infrastructure, or community and economic
development to support regional industry
cluster growth;
``(xi) establishing training programs to
meet the needs of employers in a regional
industry cluster and prepare workers for high-
wage jobs; and
``(xii) any other activities that the
Secretary may determine to be appropriate.
``(2) Requirement.--
``(A) In general.--Subject to subparagraph (B), not
more than 10 percent of a grant awarded under
subsection (b) shall be used for direct costs
associated with administering the grant.
``(B) Increase.--The Secretary may increase the
percentage described in subparagraph (A) on a case-by-
case basis.
``(e) Annual Activity Report and Evaluation.--Not later than 1 year
after receiving a grant under this section, and annually thereafter for
the duration of the grant, an eligible entity shall--
``(1) report to the Secretary on the activities funded with
the grant; and
``(2)(A) evaluate the progress that the eligible entity has
made toward the strategic objectives identified in the
application for the grant; and
``(B) measure that progress using performance measures
during the project period, including--
``(i) high-wage jobs created;
``(ii) high-wage jobs retained;
``(iii) private investment leveraged;
``(iv) businesses improved;
``(v) new business formations;
``(vi) new products or services commercialized;
``(vii) improvement of the value of existing
products or services under development;
``(viii) regional collaboration, as measured by
such metrics as--
``(I) the number of organizations actively
engaged in the industry cluster;
``(II) the number of symposia held by the
industry cluster, including organizations that
are not located in the immediate region defined
by the partnership; and
``(III) the number of further cooperative
agreements;
``(ix) the number of education and training
activities relating to innovation;
``(x) the number of jobs relocated from outside of
the United States to the region;
``(xi) the amount and number of new equity
investments in industry cluster firms;
``(xii) the amount and number of new loans to
industry cluster firms;
``(xiii) the dollar increase in exports resulting
from the project activities;
``(xiv) the percentage of employees for which
training was provided;
``(xv) improvement in sales of participating
businesses;
``(xvi) improvement in wages paid at participating
businesses; and
``(xvii) improvement in income of participating
workers.
``(f) Interagency Task Force.--
``(1) In general.--The Secretary shall establish an
interagency Federal task force to support the network of jobs
accelerators by--
``(A) providing successful applicants with
available information and technical assistance on
Federal resources relevant to the project and region;
``(B) establishing a Federal support team comprised
of staff from participating agencies in the task force
that shall provide coordinated and dedicated support
services to jobs accelerators; and
``(C) providing opportunities for the network of
jobs accelerators to share best practices and further
collaborate to achieve the purposes of this section.
``(2) Membership.--The task force established under
paragraph (1) shall--
``(A) be co-chaired by--
``(i) the Secretary of Commerce (or a
designee); and
``(ii) the Secretary (or a designee); and
``(B) include--
``(i) the Secretary of Education (or a
designee);
``(ii) the Secretary of Energy (or a
designee);
``(iii) the Secretary of Health and Human
Services (or a designee);
``(iv) the Secretary of Housing and Urban
Development (or a designee);
``(v) the Secretary of Labor (or a
designee);
``(vi) the Secretary of Transportation (or
a designee);
``(vii) the Secretary of the Treasury (or a
designee);
``(viii) the Administrator of the
Environmental Protection Agency (or a
designee);
``(ix) the Administrator of the Small
Business Administration (or a designee);
``(x) the Federal Co-Chair of the
Appalachian Regional Commission (or a
designee);
``(xi) the Federal Co-Chairman of the Board
of the Delta Regional Authority (or a
designee);
``(xii) the Federal Co-Chair of the
Northern Border Regional Commission (or a
designee);
``(xiii) national and local organizations
that have relevant programs and interests that
could serve the needs of the jobs accelerators;
``(xiv) representatives of State and local
governments or State and local economic
development agencies; and
``(xv) such other heads of Federal agencies
and non-Federal partners as determined
appropriate by the co-chairs of the task force.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.''.
SEC. 3. RURAL BUSINESS INVESTMENT PROGRAM.
(a) Limitation on Rural Business Investment Companies Controlled by
Farm Credit System Institutions.--Section 384J(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2009cc-9(c)) is amended by
striking ``25'' and inserting ``50''.
(b) Reauthorization.--Section 384S of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009cc-18) is amended by striking
``2018'' and inserting ``2023''.
(c) Coordination With Small Business Investment Company Program.--
Subtitle H of the Consolidated Farm and Rural Development Act is
amended by inserting after section 384P (7 U.S.C. 2009cc-15) the
following:
``SEC. 384Q. COORDINATION WITH SMALL BUSINESS INVESTMENT COMPANY
PROGRAM.
``(a) In General.--A rural business investment company shall be
eligible to apply for a license under section 301(c) of the Small
Business Investment Act of 1958 (15 U.S.C. 681(c)) to operate as a
small business investment company under title III of that Act (15
U.S.C. 681 et seq.).
``(b) Expedited Consideration.--To the maximum extent practicable,
the Administrator of the Small Business Administration shall expedite
the consideration of an application of a rural business investment
company submitted in accordance with subsection (a).
``(c) Deferral of Interest Payments.--For the first debenture
purchased or guaranteed by the Small Business Administration under
section 303 of the Small Business Investment Act of 1958 (15 U.S.C.
683) that is issued with respect to a rural business investment company
that is licensed in accordance with subsection (a)--
``(1) interest shall accrue in the same manner as other
debentures purchased or guaranteed under that section; and
``(2) during the first 5 years of the term of the
debenture, the rural business investment company shall not be
required to make payments with respect to the interest that
accrues on the debenture.
``(d) Memorandum of Understanding.--The Secretary may enter into a
memorandum of understanding with the Administrator of the Small
Business Administration--
``(1) to carry out this section; and
``(2) to carry out outreach activities to promote
application under subsection (a) to--
``(A) rural business investment companies; and
``(B) rural communities.''.
SEC. 4. BUSINESS AND INNOVATION SERVICES ESSENTIAL COMMUNITY
FACILITIES.
Section 306(a) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
``(27) Business and innovation services essential community
facilities.--The Secretary may make loans and loan guarantees
under this subsection and grants under paragraphs (19), (20),
and (21) for essential community facilities for business and
innovation services, such as incubators, co-working spaces,
makerspaces, and residential entrepreneur and innovation
centers.''.
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