S.Amdt. 1779

1. Adds SEC. __. REGIONAL INNOVATION CLUSTERS wherever appropriate

   Adds a section

   Inserted: SEC. __. REGIONAL INNOVATION CLUSTERS.

   Inserted: (a) Definitions.--In this section:

   Inserted: (1) Administrator.--The term "Administrator" means the Administrator of the Small Business Administration.

   Inserted: (2) Award.--The term "award" means a contract, grant, or cooperative agreement.

   Inserted: (3) Cluster initiative.--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--

   Inserted: (A) a State;

   Inserted: (B) an Indian Tribe;

   Inserted: (C) a city or other political subdivision of a State;

   Inserted: (D) a nonprofit organization, including an institution of higher education or a venture development organization; or

   Inserted: (E) a small business concern.

   Inserted: (4) Industry cluster.--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.

   Inserted: (5) Indian tribe.--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).

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   Inserted: (6) 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).

   Inserted: (7) Small business concern.--The term "small business concern" has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).

   Inserted: (8) State.--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, or any other territory or possession of the United States.

   Inserted: (b) Supporting Industry Clusters.--

   Inserted: (1) Authorization.--The Administrator shall enter into contracts with Cluster Initiatives that strengthen Industry Clusters in accordance with the requirements under this subsection.

   Inserted: (2) Industry cluster outcomes.--Cluster Initiatives shall be assessed according to their performance along the following metrics:

   Inserted: (A) Growth in number of small business concerns participating in the Industry Cluster and support industries.

   Inserted: (B) Growth in number of small business concern startups in the Industry Cluster.

   Inserted: (C) Growth in total capital, including revenue and equity investments, flowing to small business concern participants in the Industry Cluster.

   Inserted: (D) 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.

   Inserted: (E) Growth in new products, services, or business lines.

   Inserted: (F) Growth in new technologies developed within the Industry Cluster.

   Inserted: (3) Reporting.--The Administrator shall require Cluster Initiatives to submit annual reports documenting the outcomes in paragraph (2) and the activities contributing to those outcomes.

   Inserted: (4) Selection criteria.--In entering into contracts with Cluster Initiatives under this subsection, the Administrator shall consider--

   Inserted: (A) the probable impact of the Cluster Initiative on the competitiveness of the Industry Cluster, including--

   Inserted: (i) 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

   Inserted: (ii) whether the Cluster Initiative will encourage broad participation by and collaboration among all types of participants;

   Inserted: (B) if the proposed Cluster Initiative fits within a broader and achievable economic development strategy;

   Inserted: (C) the capacity and commitment of the sponsoring organization of the Cluster Initiative organization, including--

   Inserted: (i) the expected ability of the Cluster Initiative to access additional funds from other sources; and

   Inserted: (ii) the capacity of the Cluster Initiative to sustain activities once grant funds have been expended;

   Inserted: (D) 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; and

   Inserted: (E) the extent to which economic diversity across regions of the United States would be increased through the contract.

   Inserted: (5) Initial award.--The Administrator may enter into a 1-year award not to exceed $1,000,000 with each Cluster Initiative.

   Inserted: (6) Renewal.--

   Inserted: (A) In general.--The Administrator may renew an award entered into with a Cluster Initiative under paragraph (5)--

   Inserted: (i) for 1 year in an amount not to exceed $750,000 per year; and

   Inserted: (ii) for a total period not to exceed 5 years.

   Inserted: (B) Requirement.--A Cluster Initiative shall compete in a new funding opportunity to receive any further awards under this subsection.

   Inserted: (7) Cluster initiative resources.--

   Inserted: (A) In general.--The Administrator may not enter into a contract under this subsection that would provide more than two-thirds of the revenue of the entity receiving the award.

   Inserted: (B) Exception.--The Administrator may make an award providing a higher percentage of the revenue of the entity receiving the award if the recipient adequately demonstrates that the Cluster Initiative will be able to access additional funding, such as through the revenues of subcontractors or through a commitment of matching funds provided from regional partners.

   Inserted: (8) Competitive process.--The Administrator shall enter into new awards under this subsection for each year that appropriations are available.

   Inserted: (c) Feasibility Study Grants.--

   Inserted: (1) In general.--The Administrator may award grants for feasibility studies, planning, and operations to support the launch of new Cluster Initiatives.

   Inserted: (2) Amount.--The total amount of grants awarded under paragraph (1) shall not exceed $250,000.

   Inserted: (3) Eligible recipients.--The Administrator may provide grants under paragraph (1) to--

   Inserted: (A) a State;

   Inserted: (B) an Indian Tribe;

   Inserted: (C) a city or other political subdivision of a State; or

   Inserted: (D) a nonprofit organization, including an institution of higher education or a venture development organization.

   Inserted: (d) Authorization of Appropriations.--There are authorized to be appropriated $50,000,000 for fiscal year 2022 and each subsequent fiscal year to carry out this section.

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As printed